Question

What is the primary difference between interim reports under IFRS and U.S. GAAP?

 

 

Answer 1

Revenue Recognition:

Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual accounting principle used to ascertain the particular events or situations under which income becomes realized as revenue. Generally, revenue is realized when a specific critical event has occurred, when goods are transferred and service are rendered.

 

IFRS:

IFRS Stands for International Financial Reporting Standards. These are the set of accounting standards issued by the International Accounting Standards Board (IASB). These are the independent standards issued for the purpose of smooth reporting of financial information of organizations. These standards will provide common accounting language for ease in comparability among companies and countries.

 

Interim reports:

These are the reports that includes the financial information or results for a period lesser than one fiscal year.

 

Primary difference between interim reports under IFRS and US GAAP:

Revenue Recognition:

Revenue Recognition means the recording of revenues of an entity in its books.