Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter MJ, Problem 1DQ
To determine
Compare the financial statement terms used in GAAP that contrast with IFRS.
Expert Solution & Answer
Explanation of Solution
Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.
International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.
Comparison of financial statement terms used in GAAP that contrast with IFRS:
GAAP Financial Statement Term | IFRS Financial Statement Term |
Statement of comprehensive income | Statement of comprehensive income |
Balance sheet | |
Interest expense | Finance costs |
Net income | Profit for the year |
Trading investments | Financial assets at fair value through profit or loss |
Excess of issue price over par | Share premium |
Notes payable | Loans |
Wages payable, or salaries payable, or payroll taxes payable | Employee provisions |
Table (1)
Conclusion
Thus, the financial statement terms used in GAAP are compared with those used in IFRS.
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Students have asked these similar questions
Describe at least two differences between U.S. GAAP and IFRS in balance sheet presentation.
Determine the impact that specific differences between IFRS and U.S. GAAP have on financial statements, and prepare adjustments to convert IFRS balances to U.S. GAAP.
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Chapter MJ Solutions
Financial Accounting
Ch. MJ - Prob. 1DQCh. MJ - What is the difference between classifying an...Ch. MJ - If a functional expense classification is used for...Ch. MJ - Prob. 4DQCh. MJ - What are two main differences in inventory...Ch. MJ - Prob. 6DQCh. MJ - Prob. 7DQCh. MJ - Prob. 8DQCh. MJ - Prob. 9DQCh. MJ - IFRS Activity 1
Unilever Group is a global company...
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