Question

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S. GAAP or IFRS disclosures provide financial statement users the most useful information for investment or credit decisions. Provide support for your choice.

Answer 1

Answer:

Determining the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment.

GAAP and IFRS are fundamentally two sorts of bookkeeping exposures that are utilized by the organizations to record and keep up their money related records and articulations. US Generally Accepted Accounting Principles (GAAP) is the system of bookkeeping measures, which are utilized in United States, while International Financial Reporting Standards (IFRS) is the structure of bookkeeping benchmarks, which is favored in more than 110 nations including European areas over the world. Additionally, there are various contrasts amongst GAAP and IFRS bookkeeping revelations.

For case, the fundamental distinction in the two benchmarks structures is identified with bookkeeping medications for singular cases (FASB. 2014). Additionally, in GAAP, execution components are income, costs, resources, liabilities, gains, misfortunes, far reaching wage, and so on while IFRS contains income, costs, resources and liabilities as execution components.

Additionally, according to GAAP benchmarks, it is important for the organizations to plan different records,

for example,

*Balance sheet

*Income statement

*Comprehensive Income statement

*changes in Equity,

*Cash flow statement and

* Footnotes in financial statements

while IFRS require less reports keeping in mind the end goal to get ready monetary proclamations. Moreover, stock in GAAP is assessed by utilizing FIFO, LIFO, or weighted normal cost techniques, yet in IFRS, stock is resolved through FIFO or weighted normal cost strategies (IFRS. 2013). What's more, GAAP forbids stock inversion, while stock inversion is allowed in IFRS under specific criteria.

In addition, U.S. GAAP revelations give monetary explanation clients the most helpful data for speculation or credit choices.

The primary purpose for it is that it includes the whole money related report to demonstrate the real monetary position of the firm.