International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.
Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.
To examine: The differences between (A) rules-based approach, and (B) principles-based approach, in setting the accounting standards
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- Compare and contrast the Rules Based as opposed to the Principles Based Approachto developing accounting standards.arrow_forwardWhich of the following is a fundamental quality of useful accounting information? Select one: Comparability Consistency Relevance Materialityarrow_forwardDiscuss about the accounting policies, selection, relevance, reliability, faithful representation aspects in detail.arrow_forward
- What are the primary advantages of having a Codification of generally accepted accounting principles?arrow_forwardDiscuss Practical Implementations of any one generally accepted accounting Principle (GAAP), discussion may be elaborated with example.arrow_forwardBetween Principles- Based and Rules-Based Accounting Standards, which would you use and do you think that this is the right way to create accounting standards?arrow_forward
- Which FASB accounting standard(s) are next in line to converge with an IFRS standard?arrow_forward1. Explain any three fundamental reasons that accounting bodies should keep in mind when developing standards.arrow_forwardBriefly explain the following generally accepted accounting principles withyour own words and examples. a) Consistency Principlearrow_forward
- What does the conceptual framework intend to establish? a. the objectives and cocepts foruse in developing IFRSs b. the hierarchy of sources of accounting standards and principles c. the true concept of "present fairly in accordance with IFRSs' d. IFRSarrow_forwardWhich of the following is most closely linked to accounting conservatism? a. Lower-of-cost-or-market rule b. Materiality concept c. Disclosure principle d. Consistency principlearrow_forwardWhich of the following are considered secondary characteristics of accounting information? a. verifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutralityarrow_forward
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