We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Accounting-IFRS - Essay Example

Comments (0)
The IFRS is used in over 120 countries, especially countries in the European Union, while the GAAP is used primarily in the United States. Although the two standards serve the same purpose, there…
Download full paper
Read TextPreview

Extract of sample

Download file to see previous pages... This difference between the IFRS and the GAAP is the core of other differences between the two standards.
A major difference between the two standards is the way revenue is recognized. The GAAP has more extensive guidelines on revenue recognition compared to the IFRS. The IFRS has two standards of dealing with revenue recognition while the GAAP provides several concepts as well as detailed rules to deal with revenue recognition in different industries. The IFRS requires revenue to be recognized when it is likely that the benefits associated with a transaction can be traced to the entity and quantified reliably. In contrasts, the GAAP provides criterion for determinable or fixed pricing in revenue recognition. In this case revenue cannot be recognized until the amount of the revenue is ascertained. This implies that under the IFRS revenue that is not of a set amount is recognized earlier as compared to the GAAP (Erchinger, and Winfried 124).
Another point of difference between the two standards is in relation to financial assets. The IFRS only provides two standards to deal with financial assets while the GAAP has extensive guidelines that apply in various industries. While the IFRS classifies assets into various categories, the GAAP classifies financial assets into pronouncements. The GAAP looks into the legal form of the entity while classifying financial assets while the IFRS considers the nature of the instrument. Financial asset classification is important as this affects income statements and the entities equity. Different classification of financial assets by the two standards can significantly affect the amount in the entity‘s financial statements.
There is also a major difference in the manner the two standards treat intangible assets. While the GAAP does not allow for capitalization of internally incurred costs related to development, the IFRS allows for this capitalization when certain criteria are met. In relation to asset impairment, the IFRS ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Financial Advance Accounting: IFRS
International Financial Reporting Standards (IFRS) sets out accounting standards and procedures for reporting financial information of a company to the outside world. It is very much necessary that these financial reports that become available to the stakeholders of a company help them considerably in their decision-making process.
8 Pages(2000 words)Essay
IFRS and Accounting
According to the report there are two forms of accounting typically taking place within an organisation, namely, financial accounting and management accounting. Financial accounting is mainly focused on provision of financial statements of interest to external stakeholders while management accounting is majorly focused on provision of details.
9 Pages(2250 words)Essay
Since 2012 we have adopted those IFRS which were effective January 2009. However, there are no plans to at this time to adopt IFRS fully and some of the standards that were effective in 2009 have since been revised and would therefore increase the gap between our revised standard (for the process of convergence) and the revised IFRSs.
4 Pages(1000 words)Essay
Comparison of IFRS and US GAAP
The information is of importance to management, investors, creditors, employees and other government organizations. Financial statements are written reports describing quantitatively the financial health of a company. An income summary shows the income and expenditure of a firm or a balance sheet shows the assets and liabilities and equity of a company are all examples of financial statements.
10 Pages(2500 words)Essay
International corporate accounting
Securities Exchange Commission (SEC) approves the standards set by the FASB. These standards are crucial in making important economic decisions
4 Pages(1000 words)Essay
US moving to IFRS. (International Accounting)
The big question is, in terms of cost versus benefits will this adoption be favorable to the business community? A clear answer to this could be obtained by evaluating its effect to the various entities in business.
2 Pages(500 words)Essay
Choose one IAS or IFRS and explain: 1.The background to the issuing of the standard (this should include what problem or difficulty the standard was trying to solve); 2. Whether there were any controversies surrounding the accounting principles/practi
For instance, the IASB (international accounting standards board) was formed out of a desire to create an independent accounting standard that can be utilized as a baseline of understanding for the way in which financial transactions and accounting for these can be
4 Pages(1000 words)Essay
This was focused to bringing about worldwide acceptance, observance, and harmonization of accounting regulations and procedures relating to the arrangement of
1 Pages(250 words)Essay
Assume that your report is being prepared for use by the non-executive directors of the company, who have limited awareness of IFRS. The non-executive directors are unsure of the accounting requirements in relation to brands and the implications for the f
adopting International Financial Reporting Standards, companies can present their financial reports on the similar basis as their overseas competitors, thus making comparisons simpler. Organizations with subsidiaries in nations that permit or require IFRS might be capable enough
8 Pages(2000 words)Essay
Assume that your report is being prepared for use by the non-executive directors of the company, who have limited awareness of IFRS. The non-executive directors are unsure of the accounting requirements in relation to brands and the implications for the f
Brands, however, are not a mere sign or name but also give the branded service or product a unique image, especially in terms of their attributes and quality in the
9 Pages(2250 words)Essay
Let us find you another Essay on topic Accounting-IFRS for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us