International Financial Reporting Standards:
They are commonly known as IFRS. It 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.
Generally Accepted Accounting Principles:
They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).
To identify: The account title that would have been used by Incorporation N in compliance with GAAP instead of IFRS.
Want to see the full answer?
Check out a sample textbook solutionChapter 18 Solutions
Gen Combo Looseleaf Intermediate Accounting; Connect Access Card
- 18- text _____________ is one of the financial market instruments which grants a short-term loan that is usually sanctioned by the banks for importers and exporters to finance specific transactions. a. Share Acceptance b. Bond Acceptance c. Repurchase Acceptance d. Bankers’ Acceptancearrow_forwardWhat is a multinational organization that is publicly traded on a U.S. stock exchange and uses the Generally Accepted Accounting Principles (GAAP) for financial reporting?arrow_forwardq11 Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment q12 Insurance companies and brokerage houses are examples of which of the following. a. Financial instruments b. Financial institutions c. Medium of exchange d. Financial marketsarrow_forward
- Question 19 Which of the following is not a financial intermediary? a pension fund an insurance company an organized exchange, e.g. NYSE a commercial bankarrow_forwardKnowledge Check 01 Which of the following statements about the equity method are true? Note: Select all that apply. Check All That Apply International accounting standards require the equity method for use with significant influence investees. U.S. GAAP require the equity method for use with significant influence investees. U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the equity method. Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.arrow_forward11. Annual Report Disclosures in Emerging-Market Countries is generally less extensive and less credible than disclosures of companies from developed countriesSelect one:TrueFalsearrow_forward
- Q39 Statement I: The objective of financial reporting is to provide insider information about the reporting entity. Statement II: The insider information provided about the reporting entity is useful only to international investors and lenders in making decisions about providing resources to the entity. a. Neither statement I is true nor statement II is true b. Only statement I is true c. Only statement II is true d. Statement I only false but statement II is truearrow_forwardHow does IFRS 9 Financial Instruments will be affected by the changes in financial markets.arrow_forwardA foreign-based company must use US GAAP if it wants to have its stock traded on a US stock exchange. Group of answer choices True Falsearrow_forward
- Question 10 (1 point) Which of the following statements is true regarding STRIPS? a) They are issued by the Treasury. O b) They are created and sold by various financial institutions. Oc) They are not backed by the U.S. government. d) They have to be held until maturity. O e) All of the above are true regarding STRIPS.arrow_forwardWhat are some of the differences between International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP)? What are some advantages and disadvantages of adopting IFRS in the US?arrow_forwardName the five mandatory components of a complete set of financial statements according to IAS 1 "Presentation of Financial Statements". What additional reporting is required of entities whose shares or securities are publicly traded? В I PrtSc F6 F7 F8 F9 F10 F11 F12 II 立arrow_forward
- Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning