International Accounting (Comparison) Research Paper

International Accounting (Comparison) - Research Paper ExampleThe accounting standards form the principles for the preparation and unveiling of financial statements created by the International Accounting Standards Committee (IASC). The research paper highlights the major areas of similarities and differences between Generally Accepted Accounting Principles (GAAP) and International Financial coverage Standards (IFRS). The objective of this research paper is to find out those particular differences that are believed to be mostly encountered during practice.The name itself suggests that the contents of the theory will describe plastered principles that are needed to be followed in accounting but despite this GAAP acts as a very important facilitator for investors and companies. GAAP is basically a set of procedures and standards that companies follow in ordain to present their financial data. Companies follow those standards as these provide them a precise mode of representation of their financial figures which is reliable for the analysts as it becomes hard for the company to trick them by manipulating their figures. 1IFRS has gained popularity in recent times and has been well accepted by a huge fleck of countries in the world. Previously, the multinational companies had to prepare separate financial statements for each country where they had their areas of operations but IFRS has made the task easier. In IFRS the guidelines and standards are set by International Accounting Standards Board (IASB) that companies and organizations can follow when compiling financial statements. It was previously called the International Accounting Standards (IAS). IFRS provides guidance to prepare financial statements.2In order to enumerate the advantages of any accounting principle, it is important to analyze the components of it at the outset. The main components of GAAP are Inventory costs, Debt, Stockholders equity, short term