Issue № 26. March 2011

Conceptual Basis of Preparation of Financial Statements According to IFRS and US GAAP

Graduate student, Accounting, Audit and Analysis Department, Faculty of Economics, Lomonosov Moscow State University.
E-mail: evgtkachenko@gmail.com

Understanding of the conceptual principles for preparation of financial statements according to the American (US GAAP) and international (IFRS) accounting systems is particularly important in modern conditions, when Russian companies try to participate in the international financial market. Cooperation with partners from the United States and Europe requires an ability to understand information in the financial statements prepared according to US GAAP and IFRS, and to report according to this standards.

Financial statement should provide useful information to actual and potential investors, creditors and other users for making decisions about investing, credit, etc. Information should be comprehensive and readily accessible to persons qualified in the field of business. So due to reasons mentioned above and due to the absence of research on the analysis and comparison of different accounting standards, the main goal of this article is to perform a comparative analysis of the conceptual principles of preparation of financial statements according to the American (US GAAP) and international (IFRS) accounting systems.

Keywords

Financial statement, International Financing Reporting Standards (IFRS), US Generally Accepted Accounting Principles (US GAAP).