Comparison Of IFRS to GAAP Essay - 1192 Words

Comparing IFRS to GAAP Albert Payne ACC/290 11/14/2014 Daniela Trudel Comparing IFRS to GAAP This paper looks at relevant comparisons of IFRS, â€Å"International Financial Reporting Standards† and GAAP, â€Å"Generally Accepted Accounting Principles†. These two frameworks of accounting principles and practices share a lot of standards and procedures, but also differ on accepted policies. This paper will answer those standards and differences but also show the comparison of the two. Let’s look at what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP. IFRS â€Å"International Financial Reporting Standards† doesn’t command a precise order of†¦show more content†¦U.S. GAAP allows for write-downs to be made using categories of items and like IFRS, does allow write-downs to be performed on an item-by-item basis. When certain conditions are met, IFRS allows inventories that were previously written down to market value to be reversed. On the other hand, reversals of inventory write-downs are prohibited under any circumstances in U.S. GAAP. So we see the similarities and also the differences in these two bodies on inventory postings. Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? This would be a no because, GAAP and IFRS maintain very perspectives on the neutrality of financial data. These influential groups agree that financial reporting data should be relevant and authentically represented. Figures that are important would be anything useful in the eye of an investor, creditor, or regulator. Data that is faithfully represented should follow industry standards and assessments have a duty to be conservative. There are commonly used terms that are used under IFRS that are synonymous with common stock and balance sheet. These terms are; Balance Sheet is synonymous with the â€Å"Statement of Financial Position† and Common Stock is normally branded as â€Å"Share Capital Ordinary† on IFRS financial statements. Also lets look at under IFRS, can the definitions of revenues and expenses include gains and losses? Revenue in IFRS is used toShow MoreRelatedA Comparison Of Ifrs And Gaap978 Words   |  4 PagesA Comparison of IFRS and GAAP Numerous oversight organizations implement and monitor the generally accepted accounting principles, also referred to as GAAP, of their individual countries. GAAP are in place to maintain a level of consistency between the reports of individual firms, Issues arise, however when a company operates in several countries. To address these problems, the International Accounting Standards Board (IASB) developed the International Financial Reporting Standards, or IFRS. 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