Annual Reports

There atomic number 18 m each similarities and differences among US gener e reallyy original accounting principles (United States Gener entirelyy Accepted Accounting Principles) and IFRS (International Financial describe Standards). rough seek would argue that the two share more(prenominal) similarities than differences, in which US GAAP focuses on the usefulness of nurture tour IFRS focuses more on uniform reporting crosswise the board. depict of these shared principles can be set in the yearbook reports of vitrine, which uses IFRS and banding, which uses US GAAP. When studied, there are rudimentary elements to come across mingled with musical scale and Chevron and their reporting procedures. One of the key differences amid the two annual reports is represent in the income statement, in the emit to of Sales/Cost of Goods Sold section. Under US GAAP, all research & development is expensed while under IFRS, any(prenominal) research & development is e xpensed and some capitalized. This is important because it controls how a accompany accounts for expenses incurred by research and development for a given(p) period of measure; and becomes especially important for oil and turgidity companies when considering exploratory well and how they will be accounted for whether it pays off or not. The adjoining key difference between the two is found in the remainder sheet.

Under US GAAP, Chevron uses the ending in prototypical out method (Last In, First Out) while under IFRS, Shell uses first in first out (First In, First Out). This is very important when accounting for Inventory of any given company. The next ke! y difference alike found in the counterweight sheet is the accounting for Intangible Assets. Chevron does not take capitalized look and Development expenditures while Shell includes said Research and Development expenditures. The next difference, found also in the rest sheet, is accounting for Contingent Liabilities. Under US GAAP, contingent liabilities are recorded if loss is probable and jolly estimated, while under IFRS, these liabilities are recorded of they are more likely than not. The last difference...If you want to get a liberal essay, order it on our website: OrderCustomPaper.com

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