The International Financial Reporting Standards Essay

1210 Words Oct 11th, 2016 5 Pages
The International Financial Reporting Standards (IFRS) - the bookkeeping standard employed by organizations in more than 110 countries has some key contrasts from the U.S. sound accounting guidelines (GAAP). At the reasonably level, IFRS is viewed as all the more of an accounting standard which is based on principles as opposed to U.S. GAAP which is viewed as a standard based on rules. IFRS, ostensibly, incorporates and displays the financial aspects of a transaction better than U.S. GAAP.
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?
IFRS does not recommend a particular structure for the balance sheet. However the most commonly used method of presentation is under basis of current and non-current assets and liabilities. Nevertheless, a new liquidity presentation regarding assets and also financial obligations may be used where provided where such presentation gives more complete and reliable information. IFRS also provides a list of minimum headings that must be displayed in balance sheet.
Deferred taxes —Under the provision of US GAAP, Deferred taxes are classified as current or non-current on basis of division of associated non-tax asset or liability for financial reporting. While under IFRS Deferred tax asset and liabilities are always considered as non-current.
Equity: Division of capital instruments is based on the substance of issuer 's obligations which may be either…
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