Impact of Cash Equivalents on Financial Reporting: IFRS And US GAAP Comparative Review
DOI:
https://doi.org/10.51699/ajdes.v35i.851Keywords:
cash equivalents, IFRSAbstract
This study provides a comparative analysis of the impact of cash equivalents on financial statements in accordance with International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP). Attention is focused on the analysis of classification criteria, presentation methods in financial statements and their implications for key financial indicators. The results of the study reveal that although there is a relationship between IFRS and US GAAP commonality in approaches to cash equivalents, there are certain subtle differences in classification and reporting. These differences can affect the ability to compare financial statements between different companies and jurisdictions, affecting financial ratios and the overall assessment of the company's performance. The study's findings have implications for a variety of stakeholders, highlighting the importance of understanding these differences and their impact on financial analysis and decision-making. Understanding these differences allows stakeholders to make better decisions and standard-setters to strive to increase the comparability of financial reporting, which ultimately contributes to greater transparency and consistency of financial data across companies and regions.
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