Differences between International Financial Reporting Standards and Genarally Accepted Accounting Principles

Kostadinovski, Aleksandar and Gorgieva-Trajkovska, Olivera (2013) Differences between International Financial Reporting Standards and Genarally Accepted Accounting Principles. Aktuelnosti - Journal of Social Issues (22). pp. 90-117. ISSN 0354-9852

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DIFFERENCES BETWEEN INTERNATIONAL FINANCIAL REPORTING STANDARDS AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.pdf

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Abstract

Global accounting standards improve the functioning of global capital markets by providing better information to investors and other users of financial statements. They decrease the costs of preparing and interpreting financial statements and decrease cost of capital. Investing in emerging markets, impose the need to know the world’s two main accounting systems: Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). GAAP is used principally in the United States, IFRS is used in the European Union and many other countries. Many countries have their own accounting systems, although most conform to one main system or the other as they work to keep their markets modern. All accounting systems follow double-entry practices that categorize transactions as revenue or expenses, assets or liabilities. The two primary accounting systems have a few differences between them that may affect the results. If we understand the differences between GAAP and IFRS, we can make a better evaluation of numbers from companies that follow any system.

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Aleksandar Kostadinovski
Date Deposited: 17 Sep 2013 11:21
Last Modified: 17 Sep 2013 11:21
URI: http://eprints.ugd.edu.mk/id/eprint/7416

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