International Accounting 2007: Comparison of IFRS and GAAP

Essay by velkeiUniversity, Master's February 2008

download word file, 14 pages 4.5

International Accounting


Content pages

Comparison of the choosen accounting systems 3

Preparing Report 5

Comparison of ratios 6

Conclusions 7

Can one size fit all when it comes to global

accounting standards? 8

International accounting systems 9

IFRS versus US GAAP 10

Conclusions 11


As an international business participant is likely that you can compare financial position to the competitors, as well as facing other necessary problem that needed to solve. Accounting system is varying with countries. Although there are signs of integrating accounting standards, which you can encounter great differences between accounting requirements from the illustrations. Based on the different cultural legal and accounting background of the countries. Moreover the above concept is not enough to recognize that there are differences between reports to accounting system. First you have to understand the root or uses of different accounting principle. They are closely related to certain business practices used in a particular country.

At the same time analyze formal differences and substantial differences in the content as well. In this particular article, to concise the kind of differences you have to face when analyzing financial reports of companies registered in different countries. It has to work according to the law guiding the affairs of the financial companies of that country or according to the requirements of IFRS (International Financial Reporting Standards).

Comparison of the chosen accounting systems

The structure of analysis of the account system: (i) by comparing general differences and accounting principle. (ii) Analyzing the differences in the financial statements (Balance Sheet, Profit & Loss Account and Cash Flow). Finally making a comparison for the most important ratios.

General differences and accounting principles

Phrases and terms

Countries languages are essential to pay more close attention to different content and terms which have great different inside...