SAP stresses measurement of emerging earnings of a business from period to period while GAAP stresses measurement of the ability to pay claims in the future.

Question

Quizplus · Accepted Answer

SAP (International Financial Reporting Standards) focuses on measuring and reporting a company's financial performance based on the accrual accounting method, while GAAP (Generally Accepted Accounting Principles) focuses on measuring a company's financial position and ability to pay its debts based on the historic cost accounting method. While both methods are important, they prioritize different aspects of a company's financial reporting.

SAP Stresses Measurement of Emerging Earnings of a Business from Period