Based on the information below, what is the Abstract?

Introduction

There are many areas in which International Accounting and U.S. Accounting Standards differ, and this paper will bring some of them to light. In this report, it will be revealed how many solutions will be identified using business research methods. It is essential to understand research provides information to make decisions about issues understandable. The following is the completion of that project and includes an introduction, financial statement comparison, international factors, compliance/regulatory issues, data analysis, conclusion, and recommendations.

This report compares the basic financial accounting standards in the United States to those of the International Markets. It provides analyzed financial statements for two related businesses, one that uses the United States accounting reporting standards and the other that uses international accounting reporting standards.

Furthermore, it will discuss three international factors that affect the cost of products made by Google Inc. (USA) and Baidu Inc. (China) and the compliance and regulatory issues involved. Google Inc. does not need to be introduced to this platform because of its worldwide notoriety. On the other hand, Baidu, a dominant internet search engine company in China, needs to be known better in the United States. Its features and services are like Google's, but it focuses on China, which controls most of the search market.

Part 1 Financial Statement Comparison

The first business is Google Inc. (USA), located in Mountain View, California, and the accounting system used is the Generally Accepted Accounting Principles (GAAP). The second business is Baidu Inc. (China), located in Beijing, China, which operates the International Financial Reporting Standards (IFRS).

As we dive into three significant differences in how the financial data is presented on the financial statements, things become much more transparent and more understandable. The three considerable differences are revenue recognition, inventory valuation, and the presentation of the financial statements.

Regarding revenue recognition, generally accepted accounting principles allow for revenue recognition when the earnings process is complete. At the same time, international financial reporting standards recognize revenue when there is an agreement on the terms of sale and the transfer of ownership.

The second difference is inventory valuation which is based on generally accepted accounting principles and uses the Last-In-First-Out (LIFO) method for inventory valuation. In contrast, international financial reporting standards are based on the First-In-First-Out (FIFO) method.

The third difference is the presentation of the financial statements. It is essential to know that generally accepted accounting principles require four financial statements listed below and have different financial functions.

Balance Sheet

Income Statement

Cash Flow Statement

Statement of Shareholders' Equity

However, when it comes to international financial reporting standards, only two required statements show the different financial functions.

Statement of Financial Position

Statement of Comprehensive Income

Therefore, based on these differences, generally accepted accounting principles financial statements are more detailed and complicated than the international financial reporting standard's financial statements. It is clear that generally accepted accounting principles also provide more details in the note section of their financial statements, and financial statements that are easiest to understand and deliver the most precise cost data to a manager are those prepared under the generally accepted accounting principles.

Part 2 International Factors

The three international factors that affect the cost of products made by these two internet companies (Google and Baidu) can make or break a company's financial stability are listed. First are the exchange rates, which can change at any time, causing fluctuations in the costs of raw materials and labor and affecting the price of products made by these companies. This happens with both companies, but factors are more relevant to Baidu, which is in China.

Second is taxation which is the differences in tax laws between countries that can affect the cost of products made by these companies. The United States corporate tax rate is higher than the Chinese corporate tax rate, which could impact the cost of products designed by Google and Baidu.

Third is the country's economic conditions which can affect the cost of raw materials and labor as well. If there is a change in the Chinese economy and it slows down, there could be an impact on the cost of labor and raw materials for Baidu. Overall, each international factors have some form of impact on the price of products within both companies.

Part 3 Compliance/Regulatory Issues

In any company, compliances and regulatory issues that could affect the cost of products made by Google and Baidu are intellectual property laws, labor laws, and trade restrictions.

These two companies (Baidu and Google) are both technology companies that rely solely on intellectual property rights. These changes in intellectual property laws could affect their ability to protect their intellectual property, which will most likely impact the cost of their products.

Labor laws vary by country and could impact the cost of labor for each company. One thing that could create issues is the minimum wage in China which is much lower than the minimum wage in the United States. This can impact the cost of labor for Baidu.

The last compliance/or regulatory issue is trade restrictions. Trade restrictions, such as tariffs and import/export regulations, could affect the cost of raw materials and products because tariffs on imported raw materials could increase the cost of production for both Google and Baidu.

Conclusions and Recommendations

In conclusion, this report has compared primary united states and international financial accounting standards, analyzed financial statements for two related businesses, and explained three global factors that could affect the cost of products made by these companies. Finally, critical compliance and regulatory issues that affect the price of products made by these two companies have been identified.