Explain any 2 accounting standards of your choice

Question

Accepted Answer

Two accounting standards are IFRS and GAAP.

IFRS (International Financial Reporting Standards) is a set of accounting standards developed by the International Accounting Standards Board (IASB).
GAAP (Generally Accepted Accounting Principles) is a set of accounting standards developed by the Financial Accounting Standards Board (FASB) in the United States.
IFRS is used in over 120 countries, while GAAP is used primarily in the United States.
IFRS focuses on principles-based accounting, while GAAP is more rules-based.
IFRS requires companies to report on the basis of fair value, while GAAP allows companies to report on the basis of historical cost.
IFRS requires companies to report on the basis of the going concern assumption, while GAAP does not have a specific requirement for this.
IFRS has a single standard for revenue recognition, while GAAP has multiple standards depending on the industry.
IFRS has a standard for accounting for leases, while GAAP has recently updated its standard for leases.
IFRS has a standard for accounting for financial instruments, while GAAP has multiple standards depending on the type of financial instrument.
IFRS has a standard for accounting for business combinations, while GAAP has multiple standards depending on the type of business combination.

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