COMM 293 Chapter Notes - Chapter 1-3: Historical Cost, Internal Control, Trial Balance
Document Summary
Chapter 1 there is a need for one set of international accounting standards due to. Financial markets key similarities and differences between gaap and ifrs as related to accounting fundamentals: The basic techniques for recording business transactions are the same for u. s. and international companies. Both international and u. s. accounting standards emphasize transparency in financial reporting. Both sets of standards are primarily driven by meeting the needs of investors and creditors. The three most common forms of business organizations: proprietorships, partnerships, and corporations, are also found in countries that use international accounting standards. Ifrs tends to be simpler in its accounting and disclosure requirements; some people say it is (cid:373)ore (cid:862)pri(cid:374)(cid:272)iples-(cid:271)ased. (cid:863: gaap is more detailed; some people say it is more (cid:862)rules-(cid:271)ased. (cid:863) The internal control standards applicable to sarbanes-oxley (sox) apply only to large public companies listed on u. s. exchanges. Following are the key similarities and differences between gaap and ifrs as related to the recording process:
