GAAP vs. IFRS

As globalization begins to hit full stride, new rules and customs must be addressed with older and more established practices. The International Financial Reporting Standards (IFRS) represents a global perspective on the accounting rules for global organization. The United States has followed their Generally Accepted Accounting Principles (U.S. GAAP) to dictate the regulations dealing with domestic companies. The purpose of this essay is to examine both of these institutions to investigate the similarities and differences of these organizations. This essay will give background on both of these sets of rules before using two real-world companies' financial statements to analyze the practice of these rules.

US GAAP vs. IFRS

In order for fairness to prevail in the marketplace, standardized comparisons must be available for investigation for investors. Financial statements are the great equalizer in providing this data as important and pertinent information may be deduced by experienced and...
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