The Importance Of Accounting

In corporations around the world there is one thing that will be used in a daily basis, which is inventory. The inventory is a very important part of the business operation to include current asset in the balance sheet. (Kokemuller, 2016) The management of the inventory in a cost-efficiently is crucial for the corporation to ensure its generating higher revenues, profit, and minimize losses to have a successful fiscal year. (Kokemuller, 2016) There is United States generally accepted accounting principles (GAAP) and international financial reporting standard (IFRS) that are mostly used to deal with inventory of a corporation. The U.S. GAAP has the Financial Accounting Standard Board (FASB) to set the accounting standard and the IFRS has the International Accounting Standard Board (IASB) to set the international accounting standard. The IFRS is used over 120

The inventory is a very important part of the business operation to include current asset in the balance sheet. (Kokemuller, 2016) The management of the inventory in a cost-efficiently is crucial for the corporation to ensure its generating higher revenues, profit, and minimize losses to have a successful fiscal year. (Kokemuller, 2016) There is United States generally accepted accounting principles (GAAP) and international financial reporting standard (IFRS) that are mostly used to deal with inventory of a corporation. The U.S. GAAP has the Financial Accounting Standard Board (FASB) to set the accounting standard and the IFRS has the International Accounting Standard Board (IASB) to set the international accounting standard. The IFRS is used over 120 countries that focuses more on principle based and the GAAP is mainly used in the United States with the ruled based. In the two standards, there is similarities and differences when it come to the accounting process of the inventory. (Forgeas,