GAAP vs. IFRS comparison

Topics: Financial statements, ExxonMobil, Income statement Pages: 4 (1254 words) Published: December 3, 2013
GAAP/IFRS Financial Statement Comparison

Through this course we have been taking a closer look into the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). The book lays out the major similarities and differences between the two separate but equal accounting methods. I say, “Equal”, in the sense that the IFRS and GAAP accounting methods are two different ways that the any company that could come to the conclude the financial statements for any such accounting period. The differences that have apparent between the two methods, GAAP is only used in companies that have been started in the United States, whereas internationally IFRS has been adopted by those prospected companies.

This project will take a closer look into the financial statements of two different companies, Exxon Mobil that follows the GAAP method and British Petroleum (BP) under the IRFS accounting method. Exxon Mobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas, United States. It is a direct descendant from John D. Rockefeller's Standard Oil Company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. British Petroleum, most often referred to as BP, is a British multinational oil and gas company in London, England, United Kingdom where the company has established their headquarters. It is the fifth-largest energy company by market capitalization, the fifth-largest company in the world measured by 2012 revenues, and the sixth-largest oil and gas company measured by 2012 production. It is one of the six oil and gas "super majors". BP is not only in the business for distributing oil; rather it is vertically integrated and operates in all areas of the oil and gas industry.

In Chapter 4 we discussed the different types of income statements that we use under the principles of GAAP. Of these include a single step income statement, as well as a multi step income...
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