Chapter 11, Problem 11.2IFRS

To determine

Generally accepted accounting principles (GAAP): GAAP is combination of certain rules and instructions for financial reporting as per regulatory authorities. It defines the process to record and report the accounts in books of accounts. These are issued by financial accounting standards board.

International financial reporting standards (IFRS): IFRS is a combination of international rules and instructions for reporting of financial events in an accounting period. These are issued by international accounting standards boards.

To identify: The differences and similarities between GAAP and IFRS for accounting of liabilities.