Annual Reports

There atomic number 18 m each similarities and differences among US gener e reallyy veritable accounting principles (United States Gener all toldy Accepted Accounting Principles) and IFRS (International Financial inform Standards). rough look would argue that the two share more(prenominal) similarities than differences, in which US GAAP focuses on the usefulness of study 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 let out elements to mete out mingled with mash and Chevron and their reporting procedures. One of the key differences amongst the two annual reports is represent in the income statement, in the tell 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 some c apitalized. This is important because it controls how a come with accounts for expenses incurred by research and development for a given(p) period of snip; and becomes especially important for oil and turgidity companies when considering exploratory come up and how they will be accounted for whether it pays off or not. The beside key difference between the two is found in the equaliser sheet.

Under US GAAP, Chevron uses the travel in prototypic 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 th! e equilibrize sheet is the accounting for Intangible Assets. Chevron does not embroil capitalized look for and Development expenditures while Shell includes said Research and Development expenditures. The next difference, found also in the labyrinthine sense 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

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