Chapter 4, Problem 4.1IFRS

To determine

International Financial Reporting Standards (IFRS): The common set of rules and regulations (standards) of accounting which are followed at global level for the preparation of the financial statements.

Generally Accepted Accounting Principles (GAAP): These are the generally followed rules, concepts and principles used for the presentation of financial information of a business organization.

Classified Balance Sheet: A classified Balance Sheet represents the financial information under different heads of classification in order to make it easy for the users of financial statements to understand the financial position of the company.

Classification Heads: The heads of a classified balance sheet are as follows:

• Current Assets
• Long-Term Investments
• Property Plant and Equipment
• Intangible Assets
• Current Liabilities
• Long-Term Liabilities
• Stockholder’s Equity

The ways in which the format of statement of financial position under IFRS is different from balance sheet under GAAP.