International versus U.S. Accounting Standards|Quick homework help
Posted: January 29th, 2023
Instructions
International versus U.S. Accounting Standards
Research and compare international and U.S. accounting standards. This will enable you to see how the different reporting methods affect business and how product costs are affected by international business.
The learning objectives of this report are as follows:
- Compare and contrast basic U.S. and international financial accounting standards.
- Explain how key international factors affect business reporting.
- Identify key compliance and regulatory requirements.
Prepare a five-page written report with at least four scholarly sources covering the items listed below using APA format
Introduction
Part 1: Select financial statements for two related (e.g., computer manufactures, pharmaceutical companies, cell phone companies, etc.) businesses; one that uses U.S. accounting reporting and the other that uses international accounting reporting. Identify the following items:
- Provide the name, location, and accounting standards used for each business.
- Compare and contrast three major differences you see in the way the financial data is presented on the financial statements.
- Identify which set of financial statements you think is the easiest to understand and provides you with most accurate cost data as a manager. (Do not forget to look at the notes to the financial statements also.)
Part 2: Analyze and discuss three international factors you think would affect the cost of the products made at the companies you selected and why.
Part 3: Discuss any compliance and/or regulatory issues you think would be involved in the companies you have selected as they relate to the cost of the products made. For example, are there strict regulations on product pricing, tariffs imposed on raw materials needed to make the products, or strict regulations on the wages paid to workers?
Conclusion and Recommendations
SOLUTION
International Accounting Standards (IAS) and U.S. Generally Accepted Accounting Principles (GAAP) are the two main sets of accounting standards used globally.
- Differences:
- GAAP is more prescriptive and detailed compared to IAS, which are more principles-based.
- GAAP has a higher level of disclosure and includes more specific guidance compared to IAS.
- GAAP includes specific industry-specific guidance, whereas IAS is more broadly applicable to various industries.
- IAS allows companies to use fair value measurements, whereas GAAP is more focused on historical cost accounting.
- Similarities:
- Both IAS and GAAP aim to provide accurate and transparent financial information to stakeholders.
- Both sets of standards require companies to comply with accounting rules, and adhere to the principles of reliability, comparability, and consistency.
- Both IAS and GAAP aim to increase transparency and accountability in financial reporting.
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