Overview
section 1) The International Accounting Standard 18 (IAS 18) provides the general standards for revenue recognition and measurement in the International Financial Reporting Standards (IFRS).
- Provide 4 examples of the differences between the 2 sets of standards (Generally Accepted Accounting Principles [GAAP] and IFRS).
- Explain the impact on net income for each identified difference
- Section 2)There are many differences with the measurement of assets between the International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). For each of the following topics, please describe how it would be handled with both sets of standards:
- Inventories (IAS 2)
- Expense recognition
- Costs included in inventory
- Property, plant, and equipment (IAS 16)
- Cost elements
- Cost measurements
- Depreciation (component)
- Intangible assets (IAS 38)
- section 3)
- Key Assignment DraftChoose a company from the Securities and Exchange Commission (SEC) EDGAR Web site for your Key Assignment to evaluate the difference between U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) reporting.Review the financial reports and notes for the company that you have chosen from the EDGAR Web site. Using this company as your point of reference, provide general information on the following:
- Create an overview on IFRS.
- Generate a list of differences that you would expect to see on your income statement and your balance sheet between IFRS reporting and U.S. GAAP reporting.
- Describe the impact of IFRS reporting on your company's inventory account (IAS 2).
- Describe some of the differences between IFRS and U.S. GAAP regarding revenue accounting.
- Describe some of the differences between IFRS and U.S. GAAP on financial instruments.
- Inventories (IAS 2)