Annual Reports

There ar m each similarities and differences among US gener e actuallyy current accounting principles (United States Gener eithery Accepted Accounting Principles) and IFRS (International Financial describe Standards). rough inquiry would argue that the two share more(prenominal) similarities than differences, in which US GAAP focuses on the usefulness of randomness tour IFRS focuses more on uniform reporting across 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 make out elements to trust mingled with ordered series and Chevron and their reporting procedures. One of the key differences among the two annual reports is represent in the income statement, in the pronounce to of Sales/Cost of Goods Sold section. Under US GAAP, all research & development is expensed while under IFRS, any(prenominal) research & development is expensed and s ome capitalized. This is important because it controls how a gild accounts for expenses incurred by research and development for a given(p) period of clipping; and becomes especially important for oil and turgidity companies when considering exploratory surface and how they will be accounted for whether it pays off or not. The side by side(p) key difference between the two is found in the counterpoise sheet.

Under US GAAP, Chevron uses the depart in start-off 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 key difference alike found in the symm etry sheet is the accounting for Intangible ! Assets. Chevron does not complicate capitalized investigate and Development expenditures while Shell includes said Research and Development expenditures. The next difference, found also in the counterpoise 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: OrderEssay.net

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