Question

Assume you are an investor looking to invest $25,000 into a company. Which company do you think will provide you, as an investor, with the most relevant and accurate information regarding that company's pension obligation? Would it be a company that reports using IFRS or GAAP?

Answer 1

Total projected benefits attributable to (1) retirees and other employees entitled to benefits, and (2) current employees depending on their service to date

International Financial Reporting Standards (IFRS) is a set of international accounting standards that states how certain transactions and events should be reported in financial statements. It is based upon principles rather than hard-set rules, which is in contrast to U.S. GAAP. As a result of this fundamental difference, IFRS allows management to use greater discretion and flexibility when preparing a company's financials.