Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

Financial Accounting

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

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Multiple Choice

Which of the following is a true statement about International Financial Reporting Standards (IFRS)?

IFRS is used by many countries outside the United States as their primary accounting standard.

IFRS is issued by the Financial Accounting Standards Board (FASB).

IFRS is less principles-based than Generally Accepted Accounting Principles (GAAP).

IFRS requires the use of Last-In, First-Out (LIFO) inventory costing.

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Verified step by step guidance

Step 1: Understand the context of the question. The problem is asking about International Financial Reporting Standards (IFRS), which are global accounting standards used by many countries outside the United States.

Step 2: Clarify the role of IFRS. IFRS is issued by the International Accounting Standards Board (IASB), not the Financial Accounting Standards Board (FASB). FASB is responsible for Generally Accepted Accounting Principles (GAAP) in the United States.

Step 3: Compare IFRS and GAAP. IFRS is considered more principles-based compared to GAAP, which is more rules-based. This means IFRS provides broader guidelines rather than detailed rules.

Step 4: Address inventory costing methods. IFRS does not permit the use of Last-In, First-Out (LIFO) inventory costing, whereas GAAP allows it.

Step 5: Identify the correct statement. Based on the analysis, the true statement is that IFRS is used by many countries outside the United States as their primary accounting standard.