1.
Generally Accepted Accounting Principle (GAAP):
Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements.
To identify: The body which is responsible for the establishment of GAAP in United States.
2.
International Financial Reporting Standards:
They are commonly known as IFRS. It is a set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). It is universally accepted set of standards which states the rules and practice for accounting practice.
To identify: The body which is responsible for the establishment of GAAP on an international basis.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Financial Accounting
- which regulatory frameworks between UK, Europe, US and Australia provides the highest regulatory standardsarrow_forwardHow do differences in accounting standards and regulations across countries pose challenges for the accurate and consistent analysis of international transactions, and what strategies can be employed to address these challenges?arrow_forwardWhat is the intention of the Financial Market Authority creating Memorandum of Understanding agreements with other agencies within New Zealand?arrow_forward
- In what circumstance must entities register for GST in Australia?arrow_forwardThe major key players on the international side are the: a. IASB and FASB. b. IOSCO and the SEC. c. SEC and FASB. d. IASB and IOSCO.arrow_forwardBriefly discuss the differences between (a) adoption of IFRS by the U.S. Securities and Exchange Commission and (b) convergence of U.S. GAAP with IERS.arrow_forward
- How is U.S. GAAP accounting different from international accounting? What are the key differences? And what rationale drives these differences?arrow_forwardShould the United States also adopt IFRS?arrow_forwardSeveral organizations are actively involved in international standard setting. 2. Discuss the position of the SEC with respect to convergence to International Accounting Standards.arrow_forward
- What would happen if both GAAP and IFRS adopted fiar value accounting? Consider both consoldiation work and international matters.arrow_forwardInternational fi nancial reporting standards are currently developed by which entity? C . Th e International Organization of Securities Commissions.arrow_forwardWhat organizations are the two key international players in the development of international accounting standards? Explain their role.arrow_forward