GAAP vs. IFRS: Stockholders' Equity definitions Flashcards
GAAP vs. IFRS: Stockholders' Equity definitions
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/15Skip to main content
GAAP A set of accounting rules established by FASB, primarily used in the United States for financial reporting. IFRS International accounting standards developed by the IASB, used globally for financial statement preparation. FASB The U.S. organization responsible for creating and updating generally accepted accounting principles. IASB The international body that develops and issues International Financial Reporting Standards. Stockholders' Equity The residual interest in a company's assets after deducting liabilities, including paid-in capital and retained earnings. Paid-in Capital Funds contributed by shareholders through the purchase of stock, including common and preferred shares. Treasury Stock Shares that were issued and later reacquired by the company, reducing total stockholders' equity. Retained Earnings Accumulated net income not distributed as dividends, often included in reserves under IFRS. Reserves Under IFRS, items in equity not classified as paid-in capital, such as retained earnings and revaluation accounts. Revaluation Accounts Equity accounts under IFRS reflecting adjustments from revaluing long-term assets. Comprehensive Income Total change in equity from net income and other complex items not included in net income. Net Income The profit remaining after all expenses, taxes, and costs are subtracted from total revenue. Earnings Per Share A financial metric showing the portion of a company's profit allocated to each outstanding share. Prior Period Adjustments Corrections to previously issued financial statements, typically affecting retained earnings. Change in Accounting Principle A switch in accounting methods, such as from weighted average to FIFO, requiring retroactive adjustments.
03:39
