Friday, February 8, 2013

Partnership Differences US GAAP and IFRS

Partnership accounting according to U.S. GAAP is similar, but not identical, to that under IFRS. This section discusses broad differences in partnership accounting, organization, admission, withdrawal, and liquidation.

Both U.S. GAAP and IFRS include broad and similar guidance for partnership accounting. Further, partnership organization is similar worldwide; however, different legal and tax systems dictate different implications and motivations for how a partnership is effectively set up.
The accounting for partnership admission, withdrawal, and liquidation is likewise similar worldwide. Specifically, procedures for admission, withdrawal, and liquidation depend on the partnership agreements constructed by all parties involved. However, different legal and tax systems impact those agreements and their implications to the parties.

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