Chapter 13MJ, Problem 1DQ

To determine

Generally Accepted Accounting Principles (GAAP):

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

International Financial Reporting Standards (IFRS):

It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To compare: The financial statement terms used in GAAP that contrast with IFRS

Explanation of Solution

Comparison of financial statement terms used in GAAP that contrasts with IFRS:

GAAP Financial Statement Term	IFRS Financial Statement Term
Statement of comprehensive income	Statement of comprehensive income
Interest expense	Finance costs
Net income	Profit for the year
Excess of issue price over par	Share premium
Trading investments	Financial assets at fair value through profit or loss
Wages payable, or salaries payable, or payroll taxes payable	Employee provisions
Notes payable	Loans
Balance sheet	Statement of financial position

Table (1)

Conclusion

Thus, the financial statement terms used in GAAP are compared with those used in IFRS.