[Verse 1] Two big standards rule the world of finance today IFRS global, US GAAP in the USA When you're counting inventory, methods may differ LIFO's banned by IFRS, but GAAP's a forgiver Revenue recognition, both use five-step dance But timing and details give each their own stance [Chorus] Financial standards, keep it clear and true Relevant reliable, that's what we pursue Faithful representation, comparable too Verifiable timely, stakeholders need you IFRS or GAAP, principles stay the same Financial reporting is the name of the game [Verse 2] Research and development, here's where they split IFRS allows some capitalization benefit But US GAAP says expense it as you go Development costs hit the income statement flow Lease accounting changed, both standards align Right-of-use assets on the balance sheet line [Chorus] Financial standards, keep it clear and true Relevant reliable, that's what we pursue Faithful representation, comparable too Verifiable timely, stakeholders need you IFRS or GAAP, principles stay the same Financial reporting is the name of the game [Bridge] IASB sets the international way FASB guides the US every day IOSCO helps coordinate the scene Standard-setting keeps the market clean Assets liabilities equity too Income comprehensive, statements true [Verse 3] Pension accounting shows another divide IFRS remeasures, no corridor to hide Components of cost may be recognized different Both aim for transparency, that's significant Qualitative characteristics guide every choice Give financial statement users a clear voice [Chorus] Financial standards, keep it clear and true Relevant reliable, that's what we pursue Faithful representation, comparable too Verifiable timely, stakeholders need you IFRS or GAAP, principles stay the same Financial reporting is the name of the game [Outro] From London to New York, standards pave the way Making financial reporting clearer every day Learn the differences, understand the frame Financial reporting is the CFA game
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