Generally Accepted Accounting Principles (GAAP):
Generally Accepted Accounting Principles are the generally followed rules, concepts and principles which are used for the presentation of the financial information of a business organization.
International Financial Reporting Standards (IFRS):
International Financial Reporting Standards is a set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). It is universally accepted set of standards which states the rules and practice for accounting practice.
To Identify: Any differences between Generally Accepted
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD
- What are current IFRS standards for accounting for government grants?arrow_forwardwhat are the requirements for government- wide statements on CAFR?arrow_forwardUS GAAP provides the "rulebook" to help ensure all for-profit and not-for-profit entities present their _____ accurately. A. Financial performance results B. Taxes C. Government records D. Audit resarrow_forward
- What are some major adjustments required when converting from fund financial statements to government-wide statements?arrow_forward1. What are the components that are included in the minimum requirements for general purpose external financial reporting?a. Introductory section, financial section, and statistical section.b. MD&A, government-wide financial statements, fund financial statements, notes to the financial statements, and RSI.c. Letter from the chief financial officer, government financial statements, notes to the financial statements, and RSI.d. MD&A, government-wide financial statements, notes to the financial statements, and RSI 2. Which of the following is not a required section of a federal agency or department’s performance and accountability report (PAR)?a. A performance section, which includes an annual performance report (APR).b. An MD&A.c. A basic financial statements section.d. A statement of nonparticipation in political matters. 3. The basic financial statements of a not-for-profit include all of the following excepta. Statement of financial position.b. Statement of activities.c.…arrow_forwardSeparate accounting standards exist for the U.S. federal government in contrast to state and local governments; discuss why this is necessary Does the FASAB have to submit for review a proposed standard to anyone for approval? Explain.arrow_forward
- Which of the following is an expense recognition criterion for recording a government transfer payment as an expense under Section PS 3410 in the CPA Canada Public Sector Accounting Handbook? A. All stipulations have been met by the recipient. B. All eligibility criteria have been met by the recipient. C. All eligibility criteria and all stipulations have been met by the recipient. D. All conditions required by the recipient for recognizing the transfer as revenue have been met.arrow_forwardDiscuss the purpose of the capital projects fund, debt service fund, and permanent fund. Describe the difference between government-wide financial statements and fund-basis financial statements. Why is it necessary for the federal government accounting standards to differ from state and local governments accounting standards?arrow_forwardWhich financial statements are prepared using modified accrual accounting? A) Proprietary fund financial statements. B) Governmental fund financial statements. C) Government-wide financial statements. D) Both A. and B. E) Both B and C.arrow_forward
- Describe the modified accrual foundation of accounting in further detail. What is the purpose of using it in financial statements for government-sponsored funds?arrow_forward38. The national government receives a foreign grant conditioned on the construction of a public infrastructure. According to the GAM for NGAs, when does the national government recognize revenue from the grant Upon receipt of the grant When the grant becomes receivable, provided there is reasonable assurance that the attached condition will be satisfied. When the condition is met When the related expenses for which the grant is intended to compensate are incurredarrow_forwardGovernments often provide goods and services to citizens or other governmental units at a fee. These activities are accounted for in: a. the general fund b. governmental funds c. proprietary funds d. special revenue fundsarrow_forward
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:CengageIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning