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).
Note receivable:
Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable is an asset of a business.
To explain: Whether U.S GAAP and IFRS differ in the ability of a company to recognize in net income the recovery of impairment losses of accounts and notes receivable.
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
- Please explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. intangibles, biological assets, goodwill, non-controlling assets).arrow_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_forwardwhat are disadvantages of national or international accounting uniformity?arrow_forward
- Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables is treated as a sale? Explain.arrow_forwardDiscuss the primary differences between U.S. GAAP and IFRS with respect to revenue recognition.arrow_forwardWhich of the following operating segment disclosures is not required under current U.S. accounting guidelines?a. Liabilitiesb. Interest expensec. Intersegment salesd. Unusual itemsarrow_forward
- Why is the effective-interest method of amortization required under the International Financial Reporting Standards?arrow_forwardHow is U.S. GAAP accounting different from international accounting? What are the key differences? And what rationale drives these differences?arrow_forwardWhich of the following statements is correct regarding reporting of “Extraordinary gains and losses” as a separate category on the income statement? It is no longer permitted under U.S. GAAP. It is permitted under U.S. GAAP, if the related event is both unusual in nature and infrequent in occurrence. Is permitted under IFRS, but not U.S. GAAP. It is permitted under U.S. GAAP, but not IFRS.arrow_forward
- Which of the following statements concerning U.S. GAAP is true?a. Does not require segment information to be reported in accordance with generally accepted accounting principles.b. Does not require a reconciliation of segment assets to consolidated assets.c. Requires geographic area information to be disclosed in interim financial statements.d. Requires disclosure of a major customer’s identity.arrow_forwardChoose the correct. Which of the following operating segment disclosures is not required under current U.S. accounting guidelines?a. Liabilitiesb. Interest expensec. Intersegment salesd. Unusual itemsarrow_forwardWhich of the following are examples of changes in the gross carrying amount of financial instruments (PFRS 7) that contributed to the changes in the loss allowance? * Changes because of financial instruments originated or acquired during the reporting period The modification of contractual cash flows on financial assets that do not result in a derecognition of those financial assets in accordance with IFRS 9 Changes because of financial instruments that were derecognised (including those that were written-off) during the reporting period Changes arising from whether the loss allowance is measured at an amount equal to 12-month or lifetime expected credit lossesarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College