IFRS and GAAP Acc 290

IFRS and GAAP Accounting around the world could be considered the same but different. The United States generally falls under GAAP (Generally Accepted Accounting Practices) most other countries use the IFRS (International Financial Reporting Standards). While at their basic fundamentals both are still accounting, there are differences that must be adhered to in order for the accounting practices to work as they should. In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP? IFRS does not mandate a specific order or classification of accounts on the statement of financial position. In most cases, companies report assets in reverse order of liquidity. GAAP specifically requires that all accounts be ordered based on degree of liquidity. Cash is usually reported first and non-current assets will be last. Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain. No. Both maintain similar viewpoints. Both agree that financial reporting data should be relevant and faithfully represented. Information that is relevant and faithfully reported is usefu...

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