To facilitate global capital flows,balance sheet format and terminology used in most other countries is the same as that used under U.S.GAAP.

While efforts have been made to harmonize accounting standards across the globe, the balance sheet formats and terminologies used in other countries are not necessarily the same as those under U.S. GAAP. There may be differences in the classification of assets, liabilities and equity, terminology used and presentation requirements. For example, some countries require the presentation of a statement of financial position rather than a balance sheet. Therefore, it is important for companies operating in multiple jurisdictions to be aware of these differences and adjust their financial reporting accordingly.