Ifrs and Gaap
Abstract
The United State is the latest country to agree on working towards converging it own accounting standard, US GAAPs (United States Generally Accepted Accounting Principles) with IFRSs (International Financial Reporting Standards). This report is about the evaluation of the convergence project to form a global standardized financial statement. IFRS is a set of international accounting standards stated how particular types of transactions should be reported in financial statements. However, U.S GAAP is a common set of accounting principles, standards and procedures that companies use to compile their financial statement. IFRS is issued by the International Accounting Standard Board (IASB) whereas U.S GAAP is issued by the Financial Accounting Standard Board (FASB). This report includes the objective and advantages of the convergence as well as the problems that may face to prevent the successful of convergence. Besides that, major milestones that have achieved and opinions about convergence project also written in this report.
Table of Contents Abstract 1 1.0 Introduction 3 2.0 Advantages of convergence between IFRS and US GAAP 3 3.0 Problems that prevent the successful convergence of standards 4 4.0 Major milestones that have been achieved 5 5.0 Conclusion 7 6.0 References 8
1.0 Introduction
As the question stated, globalisation had cause creditor & investors difficult to compare the financial statements of companies in different countries because each of them had its own accounting standard. In addition, financial crisis and economic recession in recent year had pressure United State to agree work towards the convergence of US GAAP (General Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). IFRS is a set of international accounting standards that have been widely adopted in more than 12000 companies and over 100 countries in the world. (Gornik-Tomaszewski & Showerman, 2010) At theoretically
The United State is the latest country to agree on working towards converging it own accounting standard, US GAAPs (United States Generally Accepted Accounting Principles) with IFRSs (International Financial Reporting Standards). This report is about the evaluation of the convergence project to form a global standardized financial statement. IFRS is a set of international accounting standards stated how particular types of transactions should be reported in financial statements. However, U.S GAAP is a common set of accounting principles, standards and procedures that companies use to compile their financial statement. IFRS is issued by the International Accounting Standard Board (IASB) whereas U.S GAAP is issued by the Financial Accounting Standard Board (FASB). This report includes the objective and advantages of the convergence as well as the problems that may face to prevent the successful of convergence. Besides that, major milestones that have achieved and opinions about convergence project also written in this report.
Table of Contents Abstract 1 1.0 Introduction 3 2.0 Advantages of convergence between IFRS and US GAAP 3 3.0 Problems that prevent the successful convergence of standards 4 4.0 Major milestones that have been achieved 5 5.0 Conclusion 7 6.0 References 8
1.0 Introduction
As the question stated, globalisation had cause creditor & investors difficult to compare the financial statements of companies in different countries because each of them had its own accounting standard. In addition, financial crisis and economic recession in recent year had pressure United State to agree work towards the convergence of US GAAP (General Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). IFRS is a set of international accounting standards that have been widely adopted in more than 12000 companies and over 100 countries in the world. (Gornik-Tomaszewski & Showerman, 2010) At theoretically