Similarities Between Ifrs And International Financial Reporting Standards Essay

813 Words4 Pages
In this research project, we will be comparing the similarities and differences between IFRS (International Financial Reporting Standards) and GAAP(Generally Accepted Accounting Principles), specifically in the cash flow statement, and we will be using Apple vs Samsung’s financial statement and stock price to compare the similarities and differences between IFRS and GAAP. 2. Motivation(Vicki)
Today, with increasing globalization in the business world, many investors are looking for opportunities to invest overseas. Therefore, obtaining accurate and understandable information are essential factors that influence an investment decision. Financial report is one of the main sources that investors will evaluate to make international investments. Since accounting standards vary between countries and states, having a set of financial standards could be beneficial to many investors so that they could easily make comparisons. Nowadays, US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) are two vital accounting principles. It is important to be financially bilinguals and recognize the different between these two principles.

3. Introduction (Vicki)

GAAP and IFRS are the accounting standard unitized in over 110 countries in worldwide. Moreover, both of them offer relative information to huge amounts of users. GAAP focuses on separate the objectives for business entities and non-business entities. On the other hand, IFRS
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