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

Differences between GAAP and IFRS?

Answer 2

• 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.
• GAAP, is the accounting framework used in the United States.