Facp-Gaap vs Iasb-Ifrs

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DIFFERING ACCOUNTING STANDARDS Novice international investors might be easily confused when first learning that United States (US) companies and most non-US companies uses different accounting standards when preparing their respective financial statements. This paper will provide a brief analysis of the different standards. It is not possible to completely analyze the two accounting standards and include all the potential issues that could arise considering the myriad of different types of business transactions. ("US GAAP vs. IFRS The Basics", 2010, p. 2). The analysis in this paper will consist of the examination two companies, Caribou Coffee which operates in the United States (US) and Fazer which operates in Europe, with regards to the different accounting standards used to prepare their respective financial statements. It will continue with a discussion of the accounting standards used by each company, both internally and by their external auditors. And finally it will analyze and comment on the differences in the annual statements, provide a review of some of the specific differences in content and format, and work to determine it the financial statements are comparable. After reviewing annual financial statements the examination will continue looking to see which one of the two companies is the most profitable, comparing the growth of revenue versus income over time and between the two companies, and finally exploring the difference in profitability between the two companies. GAAP and IFRS Accounting Standards US Financial Accounting Standards Board (FASB) promulgates the Generally Accepted Accounting Principles (GAAP) and the International Accounting Standards Board (IASB) promulgates the International Financial Reporting Standards (IFRS). As IFRS was being developed, the IASB had the advantage of being able to use not only GAAP but also the

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