Introduction International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable.

QUESTION:

GAAP (Generally Accepted Accounting Standards) and IFRS handle the accounting differently for some transactions. Locate an article that discusses a specific difference and explain how each handles the recording of the transaction and what effects it has on the financial statements. (400 words and 2 citations)