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Dole And Nestle Generally Accepted Accounting Principles Essay

Dole and Nestle Generally Accepted Accounting Principles (U.S. GAAP)

When it comes to the preparation as well as presentation of financial statements in the United States, there are a number of accounting procedures and rules used by entities in an attempt to enhance a certain level of consistency. These rules and procedures are referred to as U.S. GAAP. Essentially, U.S. GAAP contributes towards the enhancement of the legitimacy and truthfulness of an entity's financial statements. For instance, under the framework, some practices like the creation of "hidden reserves" are prohibited. This effectively goes a long way to ensure that an entity's financial reports are a true reflection of its economic performance.

International Financial Reporting Standards (IFRS)

In basic terms, this is a framework of procedures, standards or rules of accounting accepted worldwide. These rules detail the procedures that should be followed in reporting a wide range...

Most of the IFRS are inspired by the older framework of standards i.e. The International Accounting Standards (IAS). Comparability remains one of the main benefits of adopting International Financial Reporting standards. With companies from across the world preparing their financial reports based on an agreed upon set of rules, it becomes easier for investors to compare the financial statements especially when it comes to making cross-border investments. Hence International Financial Reporting Standards can be said to be a timely step towards global accounting standards synchronization.
Liquidity

Liquidity can be broadly defined as a measure of how quickly a given asset can be converted to cash. In this sense, liquidity can essentially be taken to denote the marketability of a certain asset. When it comes to the computation of liquidity, ratios referred to as liquidity ratios are used. It can also be noted that…

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