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Comparing Ifrs to Gaap

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Comparing IFRS to GAAP
Nicole A. Walker
ACC/290
September 7, 2015
Linda Gandy

Comparing IFRS to GAAP

International Financial Reporting Standards or IFRS for short, is the standard method of accounting that is used in a little more than 110 counties in the world. US Generally Accepted Accounting Principles, GAAP for short, is the method of accounting that is used regularly in the United States. International Financial Reporting Standards is more “principles based” method, while the US Generally Accepted Accounting Principles is more “rules based” accounting system.
IFRS 2-1: In what ways does the format of a statement of financial position under IFRS often differ from a balance sheet presented under GAAP? IFRS guidelines do not specify a certain format. Companies usually report their assets in reverse order. IFRS financial statements have current and noncurrent assets and then current and noncurrent liabilities listed separately on their balance sheet. GAAP requires that accounts are ordered based on what could be liquidized first. Cash, assets, liabilities and equity in that order. (Epstein, 2013)
IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain. No, from what I have read about the IFRS and GAAP it seems to me that both authorities believe in reporting accurate and relevant information. The information is relevant in the eyes of a creditor or regulator and should be accurate to conform to either the IFRS or GAAP standards.
IFRS 2-3: What terms commonly used under IFRS are synonymous with common stock and balance sheet? The term balance sheet is refers is the IFRS term statement of financial position. Common stock more commonly labeled as “share capital ordinary” on IFRS financial statements. (Van, 2009)
IFRS 3-1: Describe some of the issues the SEC must consider in deciding whether

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