[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