Authors: Marin Zaya, Joseph Khorani
Abstract: International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) are two prominent accounting systems used globally. While they provide comparable purposes, variances in their principles may influence financial statement reporting, especially for multinational businesses (MNCs) operating across borders. The major purpose of this research is to undertake a comparative examination of IFRS and GAAP in the context of financial statement reporting, analysing differences in presentation, recognition, measurement, and disclosure. A quantitative research methodology was used, using trustworthy third-party sources and secondary data gathered from the official website of a chosen multinational firm. A comparison of the company’s financial statements over a one-year period made using GAAP and IFRS to examine differences in financial metrics and presentation forms between the two accounting standards, statistical tests were performed using SPSS, including the paired sample t-test and the chi-square test. There was no significant correlation between the accounting system and the way financial items were presented. Similarly, despite a small average numerical difference of 17,728.82 units, the paired samples t-test (p = 0.172) revealed no statistically significant difference between reported values under IFRS and GAAP. Additional evidence for the uniformity in financial reporting came from a perfect correlation (r = 1.000) between the numbers under the two standards. According to the study’s findings, there aren’t any notable distinctions between GAAP and IFRS with regard to the numerical values or presentation of financial statements. This supports the comparability and dependability of financial reporting by indicating that adopting either standard has no appreciable impact on the structure or data presented.
