Question

1. What are the differences between International Financial Reporting Standards (IFRS) and GAAP in terms of business liquidation and reorganization?

Answer 1

Financial reporting standards vary from country to Country generally accepted accounting principles refer to a common set of accepted accounting principles.

International financial reporting standards are a set of International Accounting Standards. Which states how particular type of transactions and other events should be reported in financial statements. International financial reporting standards are issued by the International Accounting Standards Board and they specify exactly how accountants must maintain and Report their accounts. International financial reporting standards established in order to have a common accounting language so business and accounts can be understood from company to company and Country to Country. More than 144 countries have accepted International financial reporting standards.

International financial reporting standards aims to establish a common Global accounting language for company

Generally accepted accounting principles helps to distribute financial statement to offset company. The main difference between generally accepted accounting principles and international financial reporting standards is gaap is rules baster and IFRS is principles-based.