Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.
International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.
To compare: The financial statement terms used in GAAP that contrast with IFRS
Explanation of Solution
Comparison of financial statement terms used in GAAP that contrast with IFRS:
GAAP Financial Statement Term | IFRS Financial Statement Term |
Statement of comprehensive income | Statement of comprehensive income |
Balance sheet | |
Interest expense | Finance costs |
Net income | Profit for the year |
Trading investments | Financial assets at fair value through profit or loss |
Excess of issue price over par | Share premium |
Notes payable | Loans |
Wages payable, or salaries payable, or payroll taxes payable | Employee provisions |
Table (1)
Thus, the financial statement terms used in GAAP are compared with those used in IFRS.
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