Similarities and Differences

Topics: Balance sheet, Intangible asset, Goodwill Pages: 2 (695 words) Published: October 26, 2014

Running head: Similarity and Difference
Similarities and Differences
Comparisons between the iGAAP and U.S. GAAP
There happens to be important resemblances and dissimilarities between International GAAP and the United States GAAP in the accounting for intangible assets. Resemblances as well as dissimilarities should not come at a surprise to the accounting profession. U.S. GAAP compared to any other entity has similarities and differences, so therefore the iGAAP is no different. It is estimated that corporate management spends around 50 to 90 percent on their time managing and measuring intangible assets CITATION Wil01 \l 1033 (Williams, 2001).To begin knowing what GAAP stands for; Generally Accepted Accounting Principle and are shared establishment of accounting principles, standards, and procedures that companies use to compile their financial statements. There is a mixture of influential standards and generally accepted ways of recording and reporting the accounting data. iGAAP is the international generally accepted accounting principles (IFRS). Among differences in the U.S.GAAP and the iGAAP in reference of the intangible assets is significant. International GAAP accepts a limited capitalization of internally generated intangible assets, if there happens to be a chance it is going to be an upcoming advantage and quantity can be consistently measured however the United States GAAP necessitates expensing of all costs related to internally generated intangibles CITATION Kei \l 1033 (Keiso, 2013). International GAAP also necessitates an assessment of impairment to every reporting day or long-standing assets and intangibles as well as records. United States GAAP simply measures the additional of carrying quantity over the asset’s fair valueCITATION Kei \l 1033 (Keiso, 2013). International GAAP permits reversal of damaged losses when there were an alteration in economic situations or in the predictable use of the assets, but United States GAAP,...

References: BIBLIOGRAPHY Jarboe, K. &. (2010). Intangible Assets: Innovative Financing for Innovation. Issues In Science & Technology, 75-80.
Keiso, D. W. (2013). Intermediate Accounting . Hoboken: Wiley & Sons, Inc.
Tarca, A. (2005). INTERNATIONAL CONVERGENCE OF ACCOUNTING STANDARDS: AN INVESTIGATION OF THE USE OF IAS "OPTIONS" NOT ACCEPTABLE UNDER US GAAP. International Journal Of Business Studies, 67-86.
Williams, K. (2001). Intangible Assets. Strategic Finance,, 19.
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