Question

(a) Does U.S. GAAP require that companies disclose their accounting policies? Explain. (b) Does IFRS require...

(a) Does U.S. GAAP require that companies disclose their accounting policies? Explain. (b) Does IFRS require that companies disclose their accounting policies? Explain.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a)It is required by the US GAAP for companies to provide disclosure of their significant accounting policies. The footnotes related to accounting policies describe the various accounting policies used for the financial statements balances. Disclosures relating to the accounting policy choices like inventory valuation,method of depreciation etc and other areas of company.

b)IFRS also requires the companies to disclose their accounting policies just like US GAAP but it also requires an additional information about the estimates and assumptions that have been made while arriving at the balances in financial statements. It also requires the companies to provide for how their judgements regarding the appropriate treatments for the amounts have been arrived at.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(a) Does U.S. GAAP require that companies disclose information about the assumptions and estimates they make...
(a) Does U.S. GAAP require that companies disclose information about the assumptions and estimates they make in their financial statements? (b) Does IFRS require that companies disclose information about the assumptions and estimates they make in their financial statements? Explain.
Component depreciation is required under: A. both IFRS and U.S. GAAP. B. IFRS, but not U.S....
Component depreciation is required under: A. both IFRS and U.S. GAAP. B. IFRS, but not U.S. GAAP. C. U.S. GAAP, but not IFRS.
Which of the following accounting principles does the Securities and Exchange Commission (SEC) require U.S. firms...
Which of the following accounting principles does the Securities and Exchange Commission (SEC) require U.S. firms to use when filing their financial statements? - International Accounting Standards Board (IASB) - International Financial Reporting Standards (IFRS) - Generally Accepted Accounting Principles (GAAP) - National Advisory Accounting Standards (NAAS) - Financial Accounting Standards Principles (FASP)
In respect to inventory accounting, differences between U.S. GAAP and IFRS continue to exist. What are...
In respect to inventory accounting, differences between U.S. GAAP and IFRS continue to exist. What are the differences and are they simply a difference between principles-based and rules-based financial reporting standards?
GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this...
GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to: True or False: The accounting guidelines required in the United States are called Generally Accepted Accounting Principles (GAAP). True or False: IFRS are a global set of accounting standards; however, these standards are not yet utilized in any country. True or False: IFRS are established by the Financial Accounting Standards Board (FASB). The acronym IFRS standards for: True or False: Both...
Component depreciation is: a. Required under U.S. GAAP b. Allowed, but not required, under IFRS c....
Component depreciation is: a. Required under U.S. GAAP b. Allowed, but not required, under IFRS c. Not allowed under U.S. GAAP d. Required under IFRS for each component part of PPE that is significant to the overall cost of the item
1. Which of the following statements related to U.S. GAAP and IFRS is not true? Multiple...
1. Which of the following statements related to U.S. GAAP and IFRS is not true? Multiple Choice Both U.S. GAAP and IFRS include guidance for adjusting entries. Both U.S. GAAP and IFRS prepare the same four financial statements. U.S. GAAP does not require items to be separated by current and noncurrent classifications on the balance sheet. U.S. GAAP balance sheets report current items first. IFRS balance sheets normally present noncurrent items first. 2. A company records the fees for legal...
Would a company be more likely to report a contingent liability under U.S. GAAP or IFRS?...
Would a company be more likely to report a contingent liability under U.S. GAAP or IFRS? a. U.S. GAAP b. IFRS c. Equally likely. d. Contingent liabilities are not reported under IFRS.
Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do...
Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do you find most interesting? If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?
In regards to the typical classification of interest and dividends using U.S. GAAP and IFRS, which...
In regards to the typical classification of interest and dividends using U.S. GAAP and IFRS, which of the following statements is correct: a.Under IFRS, interest received is an operating activity. b.Under U.S. GAAP, dividends received is an investing activity. c.Under IFRS, interest paid is a financing activity. d.Under U.S. GAAP, dividends paid is an operating activity.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT