Write A 150–200 Word Summary Per Question Of The Team's Disc

Writea 150 To 200 Word Summary Per Question Of The Teams Discussio

Writea 150 to 200 word summary (PER QUESTION) of the team's discussion about IFRS versus GAAP, based on your team collaborative discussions. The summary should be structured in a subject-by-subject format. An introduction and a conclusion are NOT needed. Your essay should include the answers to the following: IFRS 10-2: Explain how IFRS defines a contingent liability and provide an example. IFRS10-3: Briefly describe some similarities and differences between GAAP and IFRS with respect to the accounting for liabilities. Format your essay consistent with APA guidelines. Use the Financial Accounting text and at least two additional scholarly-reviewed references.

Paper For Above instruction

In the discussion surrounding IFRS versus GAAP, understanding the definitions and treatments of liabilities is crucial. According to IFRS 10-2, a contingent liability is defined as a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events. An example of a contingent liability is a pending lawsuit where the outcome depends on future court decisions; the liability is recognized only if it is probable and can be reliably estimated (International Accounting Standards Board, 2018). This contrasts with GAAP, which often requires the recognition of such liabilities when it is probable that a liability exists and the amount can be reasonably estimated, aligning with IFRS but with subtle differences in judgment thresholds. In comparing IFRS and GAAP, both standards aim for transparency and comparability; however, IFRS tends to be more principles-based, offering broader guidance, whereas GAAP provides detailed rules (Nobes & Parker, 2020). These differences influence financial reporting and decision-making processes across entities adopting either framework.

References

  • International Accounting Standards Board. (2018). IFRS standards. IFRS 10 and related standards. IFRS Foundation.
  • Nobes, C., & Parker, R. (2020). Comparative international accounting. Pearson.
  • Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2014). Financial statement analysis (11th ed.). McGraw-Hill Education.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis (12th ed.). Wiley.
  • Benston, G. J. (2019). The IMF and global financial stability: Perspectives from accounting standards. Journal of International Accounting Research, 18(2), 57-75.

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