rules-based. The establishments responsible for setting the IFRS and GAAP are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) respectively (Gaspar et al., 2016). The purpose of this paper is to discuss the difference between GAAP and IFRS.
Differences between IFRS and GAAP
Principle-Based vs. Rules Based
One of the fundamental differences between IFRS and GAAP lies in the conceptual approach of the two accounting methods. On one hand, IFRS is principle based whereas GAAP is rule based. The intrinsic feature of a principles-based framework takes into account the potential of dissimilar interpretations for the same transactions. This… Continue Reading...
In the most recent strategic plan of the SEC, the body points out that it is prepared to take into consideration the notion of a single set of international accounting standards. This is through the convergence of the generally accepted accounting principles (GAAP) with the Internationally Financial Reporting Standards (IFRS). This convergence will influence Autodine Restaurant as a business in different ways (Sweetman, 2016). The main impact in which this convergence will impact the business is through… Continue Reading...
term experience?
In accordance to IAS 17 Leases by the International Accounting Standards Board (IASB), there are two fundamental kinds of leases: finance leases and operating leases. The classification of every lease determines the accounting requirements. Under the preceding version of IAS 17, with respect to operating leases, the lessee is not required to recognize the asset being leased in the Balance Sheet. However, in August 2010, an Exposure Draft was issued by the IASB, which encompassed revising different changes to the IAS 17 (Hawkins, 2010). In general, the net result of the exposure draft was that lessees would be… Continue Reading...
