Gaap vs Ifrs

Qatar University

College of Business and Economics

Bachelor of Business ADMINISTRATION

Spring 2014

Assingment 2

COURSE: international accounting

acct424 26025

name & id:

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AHMED YOUSUF SHAFI - 200902883

KHAKHALED MOUSTAFA - 200904522

KAMAL MOHAMMED AONALLAH - 200907902 ahmed al haJjaji - 201001651

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SUPERVISION BY

DR. Fethi Saidi

Introduction

GAAP and IFRS are the Accounting standards which used around the world in current days. GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the United State of America, meanwhile IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries in the world. GAAP is considered a more “rules based” system of accounting; however IFRS is more “principles based.” There is expectation that U.S. Securities and Exchange Commission by the year 2015 will switch to IFRS completely.

In the following paragraphs there will be comparison between two South Korean automobiles companies one is using GAAP GM Korea, while the other one is Hyundai which uses IFRS.

Performa elements

The performance elements in GM Korea according to GAAP are Revenue or expenses, assets or liabilities, gains, losses, comprehensive income. But for Hyundai which use IFRS the performance elements are Revenue or expenses, assets or liabilities.

Financial statements

According to GAAP the financial statements of GM Korea will be including statement of comprehensive income, income statement, Balance sheet, changes in equity, cash flow statement, and footnotes. However, based on IFRS Hyundai financial statements will include Balance sheet, income statement, and changes in equity, cash flow statement, and footnotes.

Inventory

For the inventory estimate there is small difference between the two companies as result of using difference accounting standard GM Korea use...