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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