A Comparison Of Ifrs And Gaap - 978 Words

A Comparison of IFRS and GAAP Numerous oversight organizations implement and monitor the generally accepted accounting principles, also referred to as GAAP, of their individual countries. GAAP are in place to maintain a level of consistency between the reports of individual firms, Issues arise, however when a company operates in several countries. To address these problems, the International Accounting Standards Board (IASB) developed the International Financial Reporting Standards, or IFRS. The IFRS are superseding GAAP as the official reporting structure of many countries and as of July 2014, 283 have adopted the IASB’s new rule book (PricewaterhouseCoopers, 2014). The transition to IFRS has spawned a worldwide dialog of investors and analysts discussing the effects it will have on reporting and the implications this move carries into the future. This paper will review some financial reporting standards, the major distinctions between the U.S. GAAP and IFRS, and the competitive advantages and disadvantages of altering the U.S. reporting structure. Objective of Financial Reporting IFRS and GAAP both insist on information being faithfully represented and relevant. Faithfully represented data consistently adheres to proper trade standards and is conservatively reported. Any financial information that is deemed important to the users of an organization’s financial statement is considered relevant and should always be included. There are many similarities between the twoShow MoreRelatedComparison Of IFRS to GAAP Essay1192 Words   |  5 PagesComparing IFRS to GAAP Albert Payne ACC/290 11/14/2014 Daniela Trudel Comparing IFRS to GAAP This paper looks at relevant comparisons of IFRS, â€Å"International Financial Reporting Standards† and GAAP, â€Å"Generally Accepted Accounting Principles†. These two frameworks of accounting principles and practices share a lot of standards and procedures, but also differ on accepted policies. This paper will answer those standards and differences but also show the comparison of the twoRead MoreGAAP vs. IFRS comparison1264 Words   |  6 PagesGAAP/IFRS Financial Statement Comparison Through this course we have been taking a closer look into the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). The book lays out the major similarities and differences between the two separate but equal accounting methods. I say, â€Å"Equal†, in the sense that the IFRS and GAAP accounting methods are two different ways that the any company that could come to the conclude the financial statementsRead MoreComparison of Canadian Gaap and Ifrs1624 Words   |  7 Pagesto report under Canadian GAAP and instead use IFRS. This paper discusses three accounting topics to compare Canadian GAAP with IFRS. The three topics cover (1) conceptual framework, (2) property, plant and equipment, and (3) financial statement presentation. Conceptual Framework Both IFRS and Canadian GAAP are based on similar conceptual frameworks. Many of the basic concepts in IFRS (e.g., the going concern assumption, accrual accounting) are similar to Canadian GAAP. Many recognition and measurementRead MoreSimilarities and Differences. a Comparison of Ifrs and Us Gaap33264 Words   |  134 PagesSimilarities and Differences A comparison of IFRS and US GAAP October 2007 PricewaterhouseCoopers’ IFRS and corporate governance publications and tools 2007 IFRS technical publications IFRS Manual of Accounting 2008 Provides expert practical guidance on how groups should prepare their consolidated financial statements in accordance with IFRS. Comprehensive publication including hundreds of worked examples, extracts from company reports and model financial statements. 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The convergence project has yet to be completed; in the meantime, more and more countries are running towards the IFRS since it is more reliable and relevant. The main difference between these two methods is the US GAAP is rule-based while the IFRSRead MoreGaap Vs. Ifrs Standards1366 Words   |  6 PagesGAAP vs. IFRS Standards GAAP generally accepted accounting principle The Financial Accounting Standard Board issues GAAP, which focus on the practices of US companies. GAAP is known as the common set of rules, standards and procedures for accounting used in financial reporting. â€Å"GAAP is the combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information† (Investopedia.com, 2003). Companies follow GAAP rules to clarifyRead MoreInternational Financial Reporting Standards And The United States Generally Accepted Accounting Principles942 Words   |  4 PagesReporting Standards (IFRS) and the United States Generally Accepted Accounting Principles (U.S. GAAP). Secondly, it will provide the needed information to transition the financial statements of Amazon.com Incorporated to the IFRS from its current reporting standards as outlined by the U.S. GAAP. Thirdly, it will provide an in depth analysis of the changes that will be made to the financial statements. Finally, it will outline the visual differences between the U.S. GAAP and the IFRS balance sheet financialRead MoreGaap Vs Gaap And Ifrs1135 Words   |  5 PagesCurrent GAAP GAAP is an acronym for Generally accepted Accounting Practices. These a common set of accounting standards, principles and procedures that are used by companies while compiling their financial statements. A combination of standards set forth by policy boards and the commonly accepted ways of recording financial information, GAAP is deemed necassary or companies to generate investor confidence. Any fundamental investor looking at a company for long term prospects looks for consistencyRead MoreThe American Institute Of Accountants862 Words   |  4 PagesIn 1939, the AIA also known as The American Institute of Accountants formed the Committee on Accounting Procedure that issued 51 accounting research bulletins and began the process that eventually became known as the GAAP. In 1957, the American Institute of Accountants was renamed AICPA or American Institute of Certified Public Accountants. The AICPA or American Institute of Certified Public Accountants formed the Accounting Principl es Board in 1959, which issued their 31 APB Opinions. The FASB