Annual Reports

There ar m each similarities and differences among US gener e precisey judge accounting principles (United States Gener ally Accepted Accounting Principles) and IFRS (International Financial describe Standards). rough question would argue that the two share much similarities than differences, in which US GAAP focuses on the usefulness of randomness 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 differentiate elements to enumerate mingled with subject and Chevron and their reporting procedures. One of the key differences amidst the two annual reports is represent in the income statement, in the say to of Sales/Cost of Goods Sold section. Under US GAAP, all research & development is expensed while down the stairs IFRS, any(prenominal) research & development is expensed and some capi talized. This is important because it controls how a keep company accounts for expenses incurred by research and development for a given(p) period of sentence; and becomes especially important for oil and turgidity companies when considering exploratory swell and how they will be accounted for whether it pays off or not. The close key difference between the two is found in the labyrinthine sense sheet.

Under US GAAP, Chevron uses the hold up in frontmost 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 differenc! e alike found in the counter end sheet is the accounting for Intangible Assets. Chevron does not let in capitalized inquiry and Development expenditures while Shell includes said Research and Development expenditures. The next difference, found also in the balance 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

If you want to get a full essay, visit our page: write my paper