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 explain: Does U.S. GAAP and IFRS differs in the criteria they use and to determine whether a transfer of receivables is treated as a sale.
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INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
- Which of the following items will result to foreign currency transaction gain/loss due to settlement or remeasurement? Foreign currency denominated non-monetary liabilities such as unearned revenue, warranty liability, premium liability and deferred tax liability. Foreign currency denominated non-monetary assets such as inventory, PPE, intangible asset or prepaid asset. Foreign currency denominated monetary items such as accounts payable, accounts receivable, notes payable, loans receivable or interest payable. Foreign currency denominated income statement accounts such as revenue, income, expense or loss.arrow_forwardUnder IFRS, revenue from barter transactions should be measured based on the fair value of revenue from: C . similar non-barter transactions with unrelated parties.arrow_forwardUnder IFRS, revenue from barter transactions should be measured based on the fair value of revenue from: B . similar non-barter transactions with related partiesarrow_forward
- What are the reporting issues in a sale with a repurchase agreement?arrow_forwardIf the functional currency is determined to not be the foreign entity's local currency, translation is done using a. the current rate method b. the functional method c. the remeasurement method d. the derivative methodarrow_forwardWhat is a consignment arrangement? Explain the accounting treatment of goods held on consignment.arrow_forward
- Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS, respectively.arrow_forwardPlease focus on Goodwill when you answer the question below and when you apply an example to it. The question: Explain and analyze the effect of major differences between IFRS and U.S. GAAP on Financial statements in terms of Definition, recognition, Measurement, and alternative methods of measrument (if allowed), the requirements, the presentation of the items in financial statements, and disclosure in the notes of the financial statements.arrow_forwardWhich of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costsarrow_forward
- Describe guidelines for determining when foreign currency financial statements are to be translated using the current rate method and when they are to be remeasured using the temporal method.arrow_forwardWhich of the following is true of the like-kind exchange rules under Code Section 1031? They apply to gains and losses. They apply to exchanges of personal use property. They apply to exchanges of US investment realty for foreign investment realty. They apply to exchanges of business personal property.arrow_forwardHow can they say that both MONEY & CURRENCY are a medium of exchange , unit of account , portable , durable , divisible & fungible(Interchangeable)arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage