What are the major differences in accounting standards that one might want to be aware of...

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Finance

What are the major differencesin accounting standards that one might want to be aware of whentrying to compare the financial results of an American and aEuropean company?

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Well there is no end to it but i have summarised some for you below Accounting treatment varies between IFRS adopted by European company and US GAAP adopted by US based compnay in case of certain elements such as revenue and expense recognition intangible assets inventory lease impairment etc One can devote his her entire life but still not be able to note down and recall in time of need all the differences between US GAAP and IFRS So we feel any attempt towards this will be futile International Accounting Standard Board and Financial Accounting Standard Board are working together to bring convergence between US GAAP and IFRS Sl No Area IFRS by European company US GAAP by US company i a Revenue recognition with respect to the sale of goods services When risks and rewards are transferred control lies with the buyer reliable estimate of revenue and certainty of economic benefit to the See Answer

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