Acc 501 Mod 1

This essay will restrict the five following gong: generally certain identifying principles, international monetary account standards, Norwalk Agreement, generally real auditing standards, and international auditing and assurance standards. on with these terms, I will attempt to comp atomic number 18 the financial statements of three substantially known companies: Apple, Swatch Group and Nikon. Lets first assign the most common term, the generally accepted accounting principles (generally accepted accounting principles). GAAP is employ by U.S. companies and consists of many unlike widely accepted rules as to what is the correct method of presenting financial data to the world. This allows for around appearance of a standard for companies to maneuver others what they made or lost for a given clock period. GAAP is for taxs, liabilities and bottom-line profit. Along with the GAAP, there is the International Financial reporting Standards (IFRS). According to the IFRS website, although equal to each other there are still earthshaking differences between GAAP and IFRS: IFRS does non stick out Last In First Out (LIFO) as an account costing method. IFRS uses a single-step method for impairment write-downs rather than the two-step method used in U.S. GAAP, making write-downs more likely.

IFRS has a different hazard threshold and measurement objective for contingencies. IFRS does not permit circle debt covenant violations after year-end. IFRS guidance regarding revenue recognition is slender extensive than GAAP and contains relatively little industry-specific instruction. To achieve compatibility between GAAP and IFRS, the Financial explanation Standards notice (FASB) and t! he International Accounting Standards Board (IASB) converged in 2002 to put unneurotic a entry of understanding which was known as the Norwalk Agreement. At that meeting, both the FASB and IASB pledge to use their best efforts to (a) make their real financial inform standards fully compatible as before long as is practicable...If you pauperism to get a full essay, put it on our website: OrderEssay.net

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