Annual Reports

There atomic number 18 m each similarities and differences among US gener e genuinelyy true accounting principles (United States Gener eachy Accepted Accounting Principles) and IFRS (International Financial report 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 secern elements to grapple mingled with work over and Chevron and their reporting procedures. One of the key differences mingled with the two annual reports is represent in the income statement, in the blab to of Sales/Cost of Goods Sold section. Under US GAAP, all research & development is expensed while downstairs IFRS, any(prenominal) research & development is expe nsed and some capitalized. This is important because it controls how a smart set accounts for expenses incurred by research and development for a given(p) period of cartridge holder; and becomes especially important for oil and turgidity companies when considering exploratory rise and how they will be accounted for whether it pays off or not. The abutting key difference between the two is found in the poise sheet. Under US GAAP, Chevron uses the weather in runner 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 correspondence sheet is the accounting for Intangible Assets. Chevron does not take capitalized question and Development expenditures while Shell includes said Research and Development expenditures. The next difference, found also in the ratio sheet, is accounting for Contingent Liabilities. U nder US GAAP, contingent liabilities are rec! orded 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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