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Group Report 2nd Submission
ACCT3563 - Issues in Financial Reporting and Financial Analysis
13 Pages • Essays / Projects • Year: Pre-2021
Comparison and suggestion Even though the difference between accounting practices in US GAAP and AASB are minor, these small differences can actually cause a large impact such as the difference between whether the company breaches its debt covenants or not. Therefore, we suggest financial statement users be aware and understand the different methods under which debt is initial and subsequently calculated as well as how impairment of debt is recorded and to account for and be mindful of these differences when analysing the financial statements under the different standards.
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