Question:
Answers:
IAS (international account standards, previously IRFS) offers guidance and rules on how to interpret accounting practices such as impairment of assets or recognition and measurement of assets, GAAP is generally accepted accounting principles, so one is an over view the other is the actual application.
Unless you mean whats the difference between European (IASB) v US (US GAAP). The US GAAP is more rules based whereas here in Europe we're more principal based.
There is a current drive on at the moment to try amalgamate the 2 set of rules to make interpretation of accounts easier for investors/share holders etc but it'll be difficult as everyone thinks their way is the best, naturally enough. Some of the current differences are some countries don't have to produce a set of accounts unless the company has a turnover of over a certain no of million $, others produce them for their shareholders, others for tax authorities
Like anything accounting rules grow and change as business changes, which is why there are so many different types of rules, however due to recent corporate scandals such as Enron its clear that some peoples rules are better than others (my lecturer is an American so I won't say anything else)
This article contents is post by this website user, HiAnswer.com doesn't promise its accuracy.
More Questions & Answers...