The International Reporting Standards And Generally Accepted Accounting Principles

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In this paper I will be comparing and contrasting the key differences and similarities of the two the International Reporting Standards (IFRS) and Generally Accepted Accounting Principles also known as GAAP. According to AICPA International Reporting Standards can be defined as “a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.” International Financial Reporting Standards is used in over 120 countries worldwide. (International Financial Reporting Standards, n.d.) IFRS is considered more of a "principles based" accounting standard whereas US GAAP is more of a principle based accounting standard.
Generally Accepted Accounting Procedures also known as GAAP can be defined as” the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice.” According to the source Investopedia Generally Accepted Accounting Principles (GAAP) is really important because the main purpose is to ensure that accounting definitions, accounting methods, as well as assumptions, are being properly regulated and standardized.

Some objectives of GAAP are helpful to present to probable investors, creditors, and other users in evaluating the amounts timing, and uncertainty, of future cash receipts about economic resources, the claims to those resources and the…

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