Ifrs And Gaap : Ifrs Vs Gaap

1176 Words Dec 4th, 2015 5 Pages
Comparison of IFRS and GAAP
Several large parent organizations implement and apply the generally accepted accounting principles, also known as GAAP, within their respective countries. GAAP regulations are in place to preserve a level of uniformity between the reports of each of their individual firms; however, this can be an issue when the parent company has subsidiaries in foreign countries. In order to alleviate these issues, the International Accounting Standards Board (IASB) created the International Financial Reporting Standards, also known as IFRS.
IFRS regulations are overriding GAAP regulations as the sanctioned reporting procedure of many countries and 283 countries have formally adopted the IASB manual to use for financial reporting (PricewaterhouseCoopers, 2014). The conversion to IFRS has produced a global discussion of stakeholders and experts discussing the effects it will have on any implications it may have for future financial reporting. This paper will discuss the financial reporting standards, the differences between GAAP and IFRS, and the possible advantages and disadvantages of changing the reporting structure within the United States.
Financial Reporting
IFRS and GAAP both maintain that material that is being reported must be accurately represented and relevant. Information that is accurately represented constantly follows appropriate regulation and standards and is generally reported in a conservative manner. All financial material that is believed…

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