第一次个人练习参考 Accounting in Business.ppt

Accounting according to U.S. GAAP is similar, but not identical, to IFRS. Basic Principles: Neither U.S. GAAP nor IFRS specifies particular account names nor the detail required. IFRS does require certain minimum line items be reported in the balance sheet along with other minimum disclosures that U.S. GAAP does not. On the other hand, U.S. GAAP requires disclosures for the current and prior two years for the income statement, statement of cash flows, and statement of retained earnings (equity), while IFRS requires disclosures for the current and prior year. Still, the basic principles behind these two systems are similar. Both U.S. GAAP and IFRS apply transaction analysis identically as shown in this chapter. Although some variations exist in revenue and expense recognition and other principles, all of the transactions in this chapter are accounted for identically under these two systems. It is often said that U.S. GAAP is more rules-based whereas IFRS is more principles-based. The main difference on the rules versus principles focus is with the approach in deciding how to account for certain transactions. Under U.S. GAAP, the approach is more focused on strictly following the accounting rules; under IFRS, the approach is more focused on a review of the situation and how accounting can best reflect it. Both U.S. GAAP and IFRS prepare the same four basic financial statements. To illustrate, a condensed version of Piaggio’s income statement is shown (numbers are in Euros thousands). Piaggio is Europe’s leading manufacturer of motorcycles and scooters. Accounting impacts companies across the world, which requires us to take a global view. IFRS is now adopted or accepted in over 115 countries, including over 30 member-states of the EU (see gold and light tan shading in the map on the slide). Teal shading in the map reflects a system other than IFRS. The FASB and IASB continue to work on the convergence of IFRS and U.S. GAAP. Further, the SEC has a “roadmap” fo