Chapter 19, Problem 3ICA

To determine

International Financial Reporting Standard (IFRS): An international standard for identifying, analyzing and recording the transactions related to money or money’s worth for a period is compiled under the head International Financial Reporting Standard (IFRS). It gives detailed instruction on the procedure of recording the business transactions.

Generally Accepted Accounting Principles (GAAP): A set of common rules, regulations and principles that is used to account the transactions is compiled under the head Generally Accepted Accounting principles. This guideline provides instructions in recording, reporting and analyzing the financial transactions. It also provides industry-specific rules to document the transactions.

To understand: To understand the steps taken by IASB and FASB for converging the procedure of accounting for taxes.