《《Investment 8th Chap019》.docVIP

CHAPTER 19: FINANCIAL STATEMENT ANALYSIS PROBLEM SETS 1. The major difference in approach of international financial reporting standards and U.S. GAAP accounting stems from the difference between ‘principles’ and ‘rules.’ U.S. GAAP accounting is rules-based, with extensive detailed rules to be followed in the preparation of financial statements; many international standards, including those followed in European Union countries, allow much greater flexibility, as long as conformity with general principles is demonstrated. Even though U.S. GAAP is generally more detailed and specific, issues of