Ifrs And International Accounting Standards Board

871 WordsDec 1, 20154 Pages
In mainly everything, sports, class rooms, or work places you have a set of rules to go by. In the accounting world, you must also follow a set of rules and standards. The Generally Accepted Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS). Most countries around the world use IFRS while the United States uses GAAP. International Financial Reporting Standards and Generally Accepted Accounting Principles do things differently. Each country’s government sets which principles the accountants will use. There are also organizations that have been formed to help with all the confusion between countries. The organizations are called Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB). FASB is the organization that has been designed by the US government to establish GAAP in the United States. IASB is the international organization developing and promoting accounting standards to be used throughout the world. GAAP and IFRS are both accounting principles but also have different regulations. The main difference is historical values for assets and liabilities and current or market values. GAAP looks at the historical value while IFRS looks at current or market values. US accountants are conservative and always look at the historical value. Accountants using IFRS would look at the value of the land or house if it increased, even if it is not sold, while GAAP would not look at the increasing value until it
Open Document