Ifrs And Gaap Vs. Gaap

1168 Words Apr 27th, 2015 5 Pages
Introduction
This covers most of the basics about IFRS and GAAP, and many of the questions which are asked by curious people interested in accounting, also the users within the accounting world. Included is; some steps taken by both the FASB and ISAB to move to fair value measurements for financial instruments and the way that it is differed, what component depreciation is and when must it be used, what revaluation for plant assets and when it should be applied, some product development expenditures are recorded as development costs so explain the difference between those accounts and how a company decides which classification is appropriate, how IFRS defines a contingent liability and provide an example, and describe some similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.

Steps Taken by FASB and ISAB to move to Fair Value Measurement
8-1: Fair value measurement provide users with financial statements that have an accurate picture of the values of a company’s assets. IFRS and GAAP both require that firms include this information regarding the fair value measurement practices in the notes to financial statements. FASB and IASB are two different accounting standards which emphasize different types of accounts and makes financial statements be prepared in a completely different way. This causes differences which in some accounts assets and liabilities are places and it can cause structural differences in the financial…

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