Running Head: DIFFERENCES BETWEEN GAAP AND IFRS 1 Differences Between GAAP and IFRS Accounting Practices Sharon Woodards Liberty University Intermediate Accounting II 302 Professor Ashley Harper November 7‚ 2014 DIFFERENCES BETWEEN GAAP AND IFRS 2 Both the IFRS ( International Financial Reporting Standards ) and the GAAP ( Generally Accepted Accounting Principles ) are a set of accounting rules that companies either can or must
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institutions whose accounting standards are used for financial reporting‚ Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). The IFRS‚ whose rules are established and maintained by the International Accounting Standards Board (IASB)‚ is the most widely used of the two institutions but the primary choice for the United States continues to be GAAP‚ whose standards are established and maintained by the Financial Accounting Standards Board (FASB). Although
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ACC 5470 Speech Outline: Why the United States should continue using US GAAP and not adopt IFRS I. The adoption of IFRS is unlikely to have any major impact on reporting quality. a) U.S. firms currently optimize their reporting strategies‚ therefore they are expected to resist changes that are not in their interest by using the flexibility inherent in the standards. b) It is also unlikely to lower the reporting quality‚ as firms can always go beyond the required disclosures
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Comparing IFRS to GAAP Essay John Lebo ACC/291 8 July 2015 Paul Brown Comparing IFRS to GAAP Essay Some steps which both the FASB and the IASB have taken in regards to moving the fair value measurement for the financial instruments have come a long way. FASB and ISAB are each individually‚ for the majority moving forward towards a fair value measurement for the financial instruments areas. Each believes in the fair value measurement rule to be a much more accurate description of how a company’s
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Part I. Generally Accepted Accounting Principles (US GAAP) The common set of accounting principles‚ standards and procedures that companies use to compile their financial statements are called Generally Accepted Accounting Principles. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. “Published accounts have to follow the GAAP for the particular country. Some global companies that
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Executive Summary GAAP‚ generally accepted accounting principles‚ are the rules for preparing the financial statements. There are specialized professionals FASB‚ SEC‚ AAA‚ FEI‚ IMA‚ AIMR and others for developing GAAP. There are 13 principles for preparing Financial Statement. Business Entity Principle requires business to be separated from owner of the business. Going Concern principles requires the business to assume that the business will for long time. Revenue Recognition Principle considers
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Academic Research Expose Effective Tax Rate[1]– A Comparison between IFRS[2] and US-GAAP[3] Identification of the Subject The topic I have chosen refers to the relative effective taxes on profits from concerns. To calculate the effective tax rate‚ divide the total tax liability divided in current and deferred taxes by the total taxable plus non-taxable income and multiply it with 100 to get a percentage[4]. MotivationThe main focus of my studies is on accounting‚ finance and taxation. Nowadays
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1. Explain 5 major differences between IAS/IFRS and US GAAP. Research and Development With US GAAP Development costs are expensed as incurred unless addressed by guidance. They are related to computer software developed for external use is capitalized once technological feasibility is established in accordance with specific critical area. In the case of software developed for internal use‚ only those costs incurred during this application development stage may be capitalized. With IFRS (IAS
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Individual Essay One The Key Factors that Led to GAAP being Different around the World I. INTRODUCTION Accounting is a general business language in the world. This “language” is expressed by Financial Statements‚ which have many different users such as creditors‚ shareholders‚ customers‚ employees‚ suppliers and so on. Though accounting is a general language‚ some limitations exist. As we know‚ Financial Statements should follow some specific GAAP‚ which established and regulated the accounting
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IFRS vs. U.S. GAAP: Differences and Consequences of U.S. Adoption A Study of the Issue of Comparability Daniel Morey East Texas Baptist University Author Note This paper was prepared for managers and business owners who are concerned about the possible U.S. adoption of IFRS‚ and its effects on financial reporting and other effected areas. IFRS vs. U.S. GAAP: Differences and Consequences of Adoption A Study of the Issue of Comparability In the United States all publicly traded companies
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