Ifrs And Gaap : Gaap Vs. Ifrs

798 Words Aug 28th, 2016 4 Pages
Amazon.com, Inc. : GAAP vs. IFRS

The Generally Accepted Accounting Principles (GAAP) are set by the Financial Accounting Standards Board (FASB), an independent, not-for-profit organization, established in 1973 and most U.S companies use GAAP. The FASB’s standards are recognized as authoritative by the Securities and Exchange Commission (SEC), by the American Institute of Certified Public Accountants (AICPA), and by the State Boards of Accountancy.
International Financial Reporting Standards (IFRS) are the most used set of accounting principles across the world. IFRS are issued by the International Accounting Standards Board (IASB), an independent, private-sector. Over 12,000 companies in more than 116 countries have adopted IFRS, and more countries are continuing to adopt the standards each year. (IFRS, 2015).
IFRS and GAAP are two separate sets of accounting used in different countries. ISAB created IFRS and they are hoping to create a set of universal accepted accounting principles for a better comparability between companies of different countries. IFRS is principal base while US GAAP is rules based. There are advantages and disadvantages to transition to IFRS from GAAP, and by comparing US GAAP and IFRS we noticed a lot of the same standards and concepts, but also some major differences. GAAP recommends a balance sheet but is not required, while in a IFRS balance sheet is required. Also, a statement of comprehensive income is required under GAAP, but not under…

More about Ifrs And Gaap : Gaap Vs. Ifrs

Open Document