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Essay / Research Paper Abstract
This 3-page paper compares and constrasts IFRS and US GAAP standards. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTiasciasc.rtf
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Unformatted sample text from the term paper:
U.S. and PetroChina Company Ltd. in China. According to ExxonMobils Web site, the companys accounting methods are in accordance with the U.S.
Generally Accepted Accounting Principles, or GAAP, which is issued through the Financial Accounting Standards Board (ExxonMobil, 2008). Meanwhile, according to PetroChinas most recent annual report filing, this company uses International
Financial Reporting Standards as issued by the International Accounting Standards Board for its accounting methods (PetroChina Company Limited, 2008). Though both
the FASB and the IASB are doing their best to try to standardize the two methods to help international companies raise more capital in the U.S. (due to necessary required
transparency as required by GAAP), the American Institute of Certified Public Accountants (AICPA) points out that there are still several differences when it comes to reporting standards between these two
methods. The one main difference between the U.S. GAAP and the IFRS is that IFRS offers less detail overall (AICPA, 2008). GAAP,
for the most part, tends to be a great deal more transparent, especially since the passage of the Sarbanes-Oxley Act in 2002. The AICPA also points out that, for example,
IFRS guidance pertaining to revenue recognition tends to be less extensive than that of GAAPs. Nor does the IRFS contain industry-specific instructions (AICPA, 2008).
More specifically, reported results are different -- for example, IFRS doesnt recognize Last-In, First-Out (LIFO) in terms of inventory (AICPA, 2008). This means calculating inventory as it
pertains to depreciation write-down is going to be significantly different between companies using IFRS reporting methods and those using GAAP. ExxonMobil, for example, is likely going to assign a lesser
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