Paraphrase Balance sheet, GAAP and IFRS
The accounting balance sheet is one of the major financial statements used by accountants and business owners. (The other major financial statements are the income statement, statement of cash flows, and statement of stockholders' equity). The balance sheet is also referred to as the statement of financial position.
The income statement measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.
The income statement is also known as the "profit and loss statement" or "statement of revenue and expense." The income statement is divided into two parts: the operating items section and the non-operating items section.
The official name for the cash flow statement is the statement of cash flows. The statement of cash flows is one of the main financial statements. (The other financial statements are the balance sheet, income statement, and statement of stockholders' equity.) The cash flow statement reports the cash generated and used during the time interval specified in its heading.
The period of time that the statement covers is chosen by the company. The cash flow statement organizes and reports the cash generated and used in the following categories: operating activities, investing activities, financing activities and supplemental information.
Major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based. With a principle based framework there is the potential for different interpretations of similar transactions, which could lead to extensive disclosures in the financial statements.
Although, the standards setting board in a principle-based system can clarify areas that are unclear. This could lead to fewer exceptions than a rules-based system. Another difference between IFRS and GAAP is the methodology used to assess an accounting treatment. Under GAAP, the research is more focused on the literature whereas under IFRS, the review of the facts pattern is more thorough.
kindly paraphres only tha semilarty should be less than 20%