Financial Accounting
Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
Question
Book Icon
Chapter MJ, Problem 1DQ
To determine

Compare the financial statement terms used in GAAP that contrast with IFRS.

Expert Solution & Answer
Check Mark

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 TermIFRS Financial Statement Term
Statement of comprehensive incomeStatement of comprehensive income
Balance sheetStatement of financial position
Interest expenseFinance costs
Net incomeProfit for the year
Trading investmentsFinancial assets at fair value through profit or loss
Excess of issue price over parShare premium
Notes payableLoans
Wages payable, or salaries payable, or payroll taxes payableEmployee provisions

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
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.
Discuss the primary differences between U.S. GAAP and IFRS with respect to current liabilities and contingencies.
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College