Concept explainers
International Financial Reporting Standards (IFRS):
IFRS 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 describe: Whether a company can combine the accounts receivables from the ordinary customers and from related parties in their financial statement under GAAP and IFRS.
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Chapter 7 Solutions
INTERMEDIATE ACCOUNTING (ACCT 3200B)
- What is the applicable financial reporting framework in the U.S. known as? a. The Internal Revenue Code b. IFRS c. GAAP d. GAASarrow_forwardExplain and analyze the effect of differences between IFRS and U.S. GAAP related to the financial reporting of: Current liabilities Provisions Employee Benefits Share-based payment Income taxes Revenue Financial instruments Leasesarrow_forwardDo all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.arrow_forward
- 1. Why don’t the additions and deductions from the bank balance on a bank reconciliation require adjustment by the company? 2. Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.arrow_forwardwhat are disadvantages of national or international accounting uniformity?arrow_forwardWhy is the effective-interest method of amortization required under the International Financial Reporting Standards?arrow_forward
- "How do the principles of revenue recognition under the International Financial Reporting Standards (IFRS) impact the timing and amount of revenue recorded in a company's financial statements?"arrow_forwardWhich one of the following is financial instrument is used by the exporter and importer to fulfill their short term financial requirement? O a. Treasury Bills O b. Bankers' acceptances C. Certificate of Deposits O d. Commercial Papersarrow_forwardDo commonwealth bank (Australia) follow cash or accural accounting?arrow_forward
- Which of the following is essentially unsecured? A• Certificate deposits B• Treasury bills C• Commercial papers D• Repurchase agreementarrow_forwardAn American Depositary Receipt (ADR) is defined as a security:(a) that has been deposited in an interest-bearing account at a U.S. bank(b) issued outside the U.S. that represents shares of a U.S. stock(c) issued in the U.S. that represents shares of a foreign stock(d) that has a guarantee of payment from a U.S. bank(e) issued in multiple countries but denominated in U.S. currencyarrow_forwardWhich of the following is a negotiable written promise (by a bank) for a U.S. dollar deposit at a bank located outside the United States or in U.S. International Banking Facilities.? a.Certificate of Deposits b.Bankers acceptances c.Eurodollar CD d.Repurchase agreementarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College