Accounting standards

Accounting standards

Introduction

This study analyzes the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). It examines the usage and practicality of GAAP and IFRS i.e. application in representing the financial information by comparing both the systems. The basic understanding in terms of comparability in the framework of these two reporting systems is valid when comparing the firms with the same economic outputs. Similarly, firms with different economic outcomes might consider different reporting system as well. In the United States, public companies may not be allowed to adopt the IFRS in the near future, but it's the matter ...