International Financial Reporting Standards And The United States Generally Accepted Accounting Principles

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First, this paper will explore the differences and similarities between the financial statements that are required by the International Financial Reporting Standards (IFRS) and the United States Generally Accepted Accounting Principles (U.S. GAAP). Secondly, it will provide the needed information to transition the financial statements of Amazon.com Incorporated to the IFRS from its current reporting standards as outlined by the U.S. GAAP. Thirdly, it will provide an in depth analysis of the changes that will be made to the financial statements. Finally, it will outline the visual differences between the U.S. GAAP and the IFRS balance sheet financial statement.

To understand the intricacies of transitioning to IFRS from the U.S. GAAP one must understand what both are. The U.S. GAAP is derived from a combination of standards and principles that are the preferred practices established in the U.S. The main governing bodies of the U.S. GAAP are the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) . These two governing bodies work to ensure the standards of the U.S. GAAP are both relevant and faithfully represented (Wahlen, J. M., Jones, J. P., & Pagach, D. P. 2013). The IFRS on the other hand is beginning to gain traction as more and more countries adopt this practice. The IFRS has two main sources of its standards and principles which are the International Accounting Standards Board (IASB) and the International Accounting

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