INI

Accounting Standards - INI

Accounting standards are frameworks that establish rules and principles for the preparation and disclosure of corporate financial statements. The main standards include International Financial Reporting Standards (IFRS), US Generally Accepted Accounting Principles (US GAAP), and Japanese Generally Accepted Accounting Principles (J-GAAP). These standards aim to appropriately reflect companies' financial positions and provide useful information to investors and stakeholders. Each standard has distinct characteristics adapted to the legal systems and business practices of different countries, and efforts toward mutual comparison and harmonization are progressing in the globalizing economy.

accounting standards IFRS US GAAP JGAAP financial statements international accounting corporate accounting

[item.ifrs]
code=IFRS
slug=ifrs
name=International Financial Reporting Standards (IFRS)
description=Principles-based international accounting standards developed by the International Accounting Standards Board (IASB).
adoptionCountries=140
approach=Principles-based
governingBody=International Accounting Standards Board (IASB)
primaryUsers=
comparisonPoints=

[item.us-gaap]
code=US-GAAP
slug=us-gaap
name=US Generally Accepted Accounting Principles (US GAAP)
description=Rules-based accounting standards developed by the Financial Accounting Standards Board (FASB).
adoptionCountries=
approach=Rules-based
governingBody=Financial Accounting Standards Board (FASB)
primaryUsers=SEC registrants, US companies
comparisonPoints=

[item.j-gaap]
code=J-GAAP
slug=j-gaap
name=Japanese Generally Accepted Accounting Principles (J-GAAP)
description=Japanese accounting standards developed by the Accounting Standards Board of Japan (ASBJ).
adoptionCountries=
approach=Rules-based
governingBody=Accounting Standards Board of Japan (ASBJ)
primaryUsers=Japanese public companies
comparisonPoints=

[item.comparison]
code=COMP
slug=comparison
name=Key Differences
description=Summary of main differences between IFRS, US GAAP, and Japanese standards.
adoptionCountries=
approach=
governingBody=
primaryUsers=
comparisonPoints=[{"item":"Goodwill Amortization","ifrs":"Non-amortization (impairment test only)","usGaap":"Non-amortization (impairment test only)","jGaap":"Straight-line amortization within 20 years"},{"item":"Impairment Reversal","ifrs":"Permitted (except goodwill)","usGaap":"Not permitted","jGaap":"Not permitted"},{"item":"LIFO Method","ifrs":"Prohibited","usGaap":"Permitted","jGaap":"Generally not used"},{"item":"Development Costs","ifrs":"Can be capitalized","usGaap":"Expensed (except software)","jGaap":"Generally expensed"}]