International Financial Reporting Standard (IFRS): An international standard for identifying, analyzing and recording the transactions related to money or money’s worth for a considered period are compiled under the head International Financial Reporting Standard (IFRS). It gives a detailed instruction on the procedure of recording the business transactions. Generally Accepted Accounting Principles (GAAP): A set of common rules, regulations and principles which are used to account the transactions of the business is compiled under the head Generally Accepted Accounting Principles (GAAP). This guideline provides instructions in recording, reporting and analyzing the financial transactions. It also provides industry-specific rules to record the transactions. To determine, from the given statements, which statement is false and to understand why it is a false statement.

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Chapter 22, Problem 1IST

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 considered period are compiled under the head International Financial Reporting Standard (IFRS). It gives a detailed instruction on the procedure of recording the business transactions.

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

To determine, from the given statements, which statement is false and to understand why it is a false statement.

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