What are the differences between Generally Accepted Accounting Principles (GAAP) and IFRS concerning recognition of accounts...

What are the differences between Generally Accepted Accounting Principles (GAAP) and IFRS concerning recognition of accounts receivables?

Expert Solution

Generally accepted accounting principal refer to a common set of accepted accounting principles , standards and procedures that companies and their accountants must follow when they coimpile their financial statements.

International financial reporting standard is a set of international accounting standard, which state how particular types of transaction should be reported in the financial statement

Under GAAP- Revenue is recognized on the date the sale occurs and then included in a firm's gross revenue on the income statement.

Under IFRS Revenue is to be recognized when all of the following conditions are met –

- A contract is present that has been approved by contracting parties and identifies obligations and payment terms

- The entity has satisfied the performance obligation by transferring an asset as agreed upon in the contract • The asset has been transferred when the customer obtains control of the asset

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ekkarill92 answered 2 years ago

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