Accounting Principles

Question 1

What is GAAP?

Answer 1

Generally Accepted Accounting Principles

It sets standards on the details and legalities of business and corporate accounting

Question 2

What is IFRS16

Answer 2

Became effective on 1st January 2016

IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value

Question 3

Differences between GAAP and IFRS?

Answer 3

Plcs have to adopt IFRS

In the UK GAAP is more commonly adopted as it is more straightforward and is less comprehensive

IFRS is used primarily by businesses reporting their financial results anywhere in the world except the United States.
Generally Accepted Accounting Principles, or GAAP, is the accounting framework used in the United States.