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frozen [14]
3 years ago
13

One difference between accounting in the united states and the european union is that the u.S. Follows ________

History
1 answer:
Over [174]3 years ago
4 0

Answer:

GAAP

Explanation:

GAAP stands for generally accepted accounting principles. The GAAP contains a set of rules and financial principles that accountants in united states must use as the standard of their financial reporting.

The European Union follow IFRS.

IFRS stands for International Financial Reporting Standards. Just like GAAP, it is also containts a set of rules and principles for financial reporting. But IFRS Is used by a lot of countries internationally.

Generally, the rules/principles written between the two is pretty much the same. But there are still a couple of differences.

For example,

GAAP require the creation of statement of comprehensive income. IFRS on the other hand , does not include this as a requirement.

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