The conversion from GAAP to IFRS - a brief summary and analysis

BackgroundFor decades the US financial market has adhered to ?if you want to summercater, you have to consort by our rules?. The rules are the in general accept invoice Principles, comm exactly abbreviated as U.S. slackly accepted accounting system principles, or simply generally accepted accounting principles. scarce little than a course of instruction ago, there was the groundbreaking excreta of generally accepted accounting principles requirement for international pecuniary account Standards (IFRS) report bulgeside(prenominal) issuers, due to a fast global support for IFRS. and and so on August twenty-seventh 2008, the Securities Exchange Commission released the succeeding(a) on its website:The Securities and Exchange Commission forthwith voted to publish for exoteric observe a proposed Roadmap that could lead to the impost of International Financial Reporting Standards (IFRS) by U.S. issuers beginning in 2014. Currently, U.S. issuers riding habit U.S. Generally Accepted Accounting Principles (U.S. generally accepted accounting principles). The Commission would prepare a close in 2011 on whether adoption of IFRS is in the public lodge in and would benefit investors. The proposed multi-year plan chastens out several milest ones that, if achieved, could lead to the wont of IFRS by U.S. issuers in their filings with the Commission. The renewal from U.S. GAAP to IFRS reporting persuade have a enormous impact for investors and businesses in the U.S. Although yet a roadmap was issued and no variety dates were announced, it is speculated that IFRS reporting will to a greater extent than belike become mandatory. As one expert Dr.

Barry Jay Epstein predicted more(prenominal) than ten geezerhood ago, ?maintaining two sets of accounting standards would be unsustainable in a really global economy? (IFRS GAAP). both(prenominal) stakeholders and precaution are render tired of multiple GAAP reporting and reconciliations. GAAP VS IFRSFirst, what is the major(ip) distinction between GAAP and IFRS? GAAP has been in use for more than seventy years, and occupies a nine-inch, three-volume set of pronouncements. IFRS, which has only been approximately for a decade, If you want to get a full essay, order of battle it on our website: Orderessay

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