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Ifrs and Gaap Essay

In: Business and Management

Submitted By nowayjose
Words 523
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Both the International Accounting Standards Board (IASB and the Financial Accounting

Standards Board (FASB) provide oversight for Generally Acceptable Accounting Principles (GAAP)

and the International Financial Reporting Standards (IFRS). Both the FASB and the IASB have been

working together to bring more of a uniform set of regulations between the two standards. GAAP has

tradionally always provided the guidelines that companies in the United States follow when putting

their financial statements together and the IFRS has been the standard that international companies

have followed.

IFRS 2-1: In what ways does the format of a statement of financial or position under IFRS

often differ from a balance sheet presented under GAAP?

The IFRS doesn't say that there has to be a certain order of accounts on the financial

statement. Most of the time companies will report their assets in an order of liquidity. GAAP

mandates that every account be listed in their degree of liquidity. Cash is reported first and

then assets that aren't current will be reported last.

IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of

financial reporting? Explain.

The IFRS and GAAP have similar ways of viewing the financial data. Both of them

state that the data should be accurate, relevant and truthful. Information that is considered

considered relevant is anything that an investor would want to see.

IFRS 2-3: What terms commonly used under IFRS are synonymous with common stock and balance sheet? The Financial Position Statement is also known as a Balance Sheet. Common Stock is usually

listed as “Share Capital Ordinary.”

IFRS 3-1: Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS. The SEC needs to consider…...

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