Compare the financial statement terms used in GAAP that contrast with IFRS.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

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Students have asked these similar questions

What are two differences between IFRS and U.S. GAAP with respect to the classification of financial statement items?

The US GAAP provides rules and guidance for what two primary financial reporting purposes?

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

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Answer 5

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

Answer 6

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

Answer 7

Chapter MJ, Problem 1DQ

To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Answer 8

Expert Solution & Answer

Explanation of Solution

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.

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.

Comparison of financial statement terms used in GAAP that contrast with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Balance sheet	Statement of financial position
Interest expense	Finance costs
Net income	Profit for the year
Trading investments	Financial assets at fair value through profit or loss
Excess of issue price over par	Share premium
Notes payable	Loans
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions