Chapter 13, Problem 9QS

To determine

Generally Accepted Accounting Principles (US GAAP):

US GAAP is a set of accounting rule which a company should accept at time of preparation and presentation of it financial statements.

International Financial Reporting Standards (IFRS):

IFRS is a set of principle based international accounting guidelines published by IASB (International Accounting Standards Board) for the preparation of financial statements. It states how different transactions and financial events should be presented in financial statements. They are worldwide adopted standards which are easy to understand and compare.

Horizontal Analysis:

Horizontal analysis also termed as trend analysis is a financial statement analysis which determine the changes in historical data of financial statements over a period of time.

Vertical Analysis:

Vertical analysis is a method of representing each transaction as a proportion of total account.

a.

To prepare: Differences in ratio analysis under US GAAP and IFRS.