Submitted by: Submitted by boshafe3
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Category: Business and Industry
Date Submitted: 06/14/2014 08:16 AM
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...