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 indicate: The letter whether each of the given terms and phrases is more associated with financial statements prepared in accordance with Country U GAAP (U) or IFRS (I).
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INTERMEDIATE ACCOUNTING
- Accounting type Question: Securities premium reserve account is shown on the liabilities side in the balance sheet under the heading A. Reserves and surplus B. Current liabilities and provisions C. Share capital D. All of thesearrow_forwardWhich of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury billarrow_forward13- All institutions and procedures for bringing buyers and sellers of shares, debentures, bonds, derivatives, currencies together are called as: a. Financial Instruments b. Financial Markets c. Financial Assets d. Financial Institutionsarrow_forward
- Debt securities include Oa. common stock Ob. preferred stock O c. notes and bonds O d. All of these choicesarrow_forwardIndicate whether the following instruments are examples of money market or capital marketsecurities.a. U.S. Treasury billsb. Long-term corporate bondsc. Common stocksd. Preferred stockse. Dealer commercial paperarrow_forwardWhich one of the following is not a money market instrument? a.Equity Shares b.Bankers' acceptances c.Eurodollar CD d.Repurchase agreementarrow_forward
- p6 According to M&M Proposition 2, the cost of a firm’s common stock is directly related to the rating of its common stock in the market. the number of shares outstanding. its asset turnover ratio. its debt-equity ratio.arrow_forwardWhat are the four major components of stockholders' equity? Explain each component. (Click the icon to view a list of possible explanations.) (Select the four major components of stockholders' equity and the explanation that best describes each component.) 1. 2. 3. 4. Major component Explanations Explanation a. Includes the cumulative record of: unrealized gains and losses on investment securities, unrealized pension costs, and unrealized foreign currency translation gains or losses. b. An amount that will be due within the next reporting period. c. Includes the capital stock sold by the entity at face or par value and amounts received above par value. d. The historical record of earnings that have not been paid out or distributed as dividends to shareholders. e. The amount of cash stockholders withdraw from the company's bank account. f. The amount of the subsidiary's net assets owned by outside shareholders. Xarrow_forward5. Definitions: Pick 5 and define, describe why each matter, provide an example Define Describe why it matters Term Time value of money Passive income Net Worth Credit Score/Credit rating Risk Evaluation Stocks bonds Gross income v. Net income Mutual funds ETFs Index funds RRSP Consumer Debt OSAP Example(s)arrow_forward
- Please describe the reporting of preferred stock consistent with the U.S. GAAP - Please describe the reporting of preferred stock consistent with IFRS Please describe the potential effect of the differences between U.S. GAAP and IFRS with respect to reporting of Preferred Stock on at least one commonly usef financial statement ratio.arrow_forwardWhich of the following are money market securities?I. Jumbo CDsII. Short-term municipal debtIII. U.S. Treasury billsIV. Commercial paper A. I and IV only B. II and III only C. I, II, and IV only D. II, III, and IV only E. I, II, III, and IVarrow_forwarddefine \ Repatriation of earnings; political risk Eurodollar; Eurobond; international bond; foreign bond The euroarrow_forward
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