International Financial Reporting Standards

As the complexity of our financial economy develops it is important that our accounting standards progress in accordance. Accounting is very important to the development of the global and local economies. Accounting is basically the gathering, summarizing and presenting of financial information of an entity to interested internal, external and possible investors. This information should be presented in a non-bias way so that other people are able understand.

Explanation: Both IFRS and GAAP have different requirements about the measurement and process for revaluating fixed assets to fair value.

One of the major differences is that one is based on rules and the other on principles. GAAP is more of a a rule-based method. These rules are essential to provide comparison of present and past performances. Whereas IFRS is a principle based method in which you can have different interpretations of the same tax-related

There are several differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). The IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based", IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP. As a team me collaborated to answer the following seven questions.

Financial statement presentation varies from GAAP to IFRS. The first variation is the financial period required for comparison. GAAP requires public companies to include the previous 2-year periods of their balance sheets, and 3-year periods

U.S. GAAP reports extraordinary items on the income statement separately from the ordinary operations under the Income from continuing Operations, net of tax. IFRS does not isolate extraordinary items on the income Statement. Prior to update on how to report extraordinary items, there are two criteria used to classify an event as an

U.S GAAP refers to Generally Accepted Accounting Principles, which is a standard accounting principle mandated for private and public organizations in the United States. On the other hand, International Financial Reporting Standards (IFRS) is an accounting standard designed for companies operating internationally. While there are several similarities between the two accounting principles, there are still major differences. A valuation technique is one of the major differences between the US GAAP and IFRS.

The statement of financial position that is reported under IFRS standards is the same to the balance sheet that is reported under GAAP. Although both statements are prepared differently, they are intended to report shareholder equity, liabilities and balance of assets.

The financial statements required by IFRS and US GAAP are: a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of cash flows. Both entities also require notes that include the accounting policies used when preparing their financial statements, but US GAAP users are allowed to disclose their changes in owner’s equity in their financial notes or on a statement of changes in equity. When presenting these financial statements, IFRS requires comparative financial statements from the previous period, and a statement of financial position from the beginning of the previous period. US GAAP does not require comparative financial statements, but the SEC requires comparative financial statements for the three previous periods (IFRS compared, 2015). I do not think US GAAP

Through this course we have been taking a closer look into the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). The book lays out the major similarities and differences between the two separate but equal accounting methods. I say, “Equal”, in the sense that the IFRS and GAAP accounting methods are two different ways that the any company that could come to the conclude the financial statements for any such accounting period. The differences that have apparent between the two methods, GAAP is only used in companies that have been started in the United States, whereas internationally IFRS has been adopted by those prospected companies.

GAAP allows the shareholders’ equity and any changes in it to be included in the notes in the appropriate financial statements. IFRS, on the other hand, insists that the changes be incorporated in a separate statement (Ernst and Young, 2012).

The disclosures required under UK GAAP and IFRS are, however, different in some cases (www.accountancyage.com, 2004).

International Financial Reporting Standards (IFRS) describes a common method or modality by which the financial reporting of different business organizations is carried out. Initially, different countries used to have their distinct and separate standards of financial reporting. Financial reports are possibly obtained from the financial statements of any business organization. A financial statement as principle mode enables a company to present its f0inalncial information to the outsiders who may have the interest of having the knowledge of a company's financial status. They give the position of a company's financial status, comprehensive income statement, cash flow statement, and equity changes statement.

Companies that use IFRS have different ways of working then under the company’s act. If using the IFRS, we have to produce financial statements that present fairly a company’s financial position, while, under the company’s Act, companies have to produce a fair statement as well as a true one.

As the globalization of markets has become more prominent in recent years, many are wondering why a single set of accounting standards are not followed. After all, English may be the business language, but accounting is the language of business. Accounting standards are essentially just rules that must be followed when reporting any accounting data on any of the company’s financial statements. The objective is to provide the user (creditor or investor) with relevant information of the company’s financial position so that users then can compare it with another company’s financial statements and proceed to make an informed decision. With only that objective in mind, it can be seen why a common set of accounting standards would be beneficial.