Question

What are the key differences in accounting measurement, classification, and financial statement layout for US Steel and Tata Steel?

US Steel: https://www.ussteel.com/sites/default/files/annual_reports/USS%20Form%2010-K%20-%202016.pdf

Tata Steel: http://www.tatasteel.com/media/3669/integrated-report-and-annual-accounts-2016-17.pdf

Answer 1

The US Steel Figures will be in $. It Follows International Standard of Accounting (IFRS). They are moving towards Fair value Accounting.They present their Financial Statements in colour & tabular form to make more understandable and presentable.

The Tata Steel Figures will be in Rupees. It Follows Indian Standard of Accounting (Ind AS). They are following Accrual basis of Accounting. They are Donating a major portion of their income. The Financial Statement are prepared as per Schedule III of Companies Act 2013.

The Financial Statement are classified into Following parts:- Balance Sheet, Profit & loss A/c, Cash Flow Statement, Statement of Changes in equity, Notes to Financial Statement.

Note:- Accounting measurement is the computation of economic or financial activities in terms of money, hours or other units. An accounting measurement is a unit of some measurable element that is used to compare and evaluate accounting data. Accounting is often measured in terms of money.