Name five differences between GAAP and IFRS and implications
Not what you're looking for?
Discuss, and explain five differences between GAAP (Generally Accepted Accounting Principles) and IFRS (International Accounting Standards Committee). Analyze the accounting implications with examples. Give proper references.
Purchase this Solution
Solution Summary
Your discussion is 704 words and indicates five differences: revenue recognition, long term contracts, warranties, discounting revenues and impairment losses. In text citations are given for some of these.
Solution Preview
GAAP vs. IFRS
Discuss, and explain five differences between GAAP (Generally Accepted Accounting Principles) and IFRS (International Accounting Standards Committee). Analyze the accounting implications with examples.
1. Revenue recognition.
The criteria for recognizing revenue differs somewhat between US GAAP and IFRS.
• SEC issued Staff Accounting Bulletin (SAB) No. 101 criteria for realizing revenue as (a) persuasive evidence of arrangement, (b) delivery occurred (risk of loss is with customer) or services rendered, (c) price determined, and (d) collectability reasonably assured.
• IAS 18 indicates the following conditions for recognizing revenue: (a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be measured reliably; (d) it is probable that the economic benefits associated with the transaction will flow to the entity; and (e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Learning Lean
This quiz will help you understand the basic concepts of Lean.