Revaluation Assets

This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This

Since 2002, Financial Accounting Standards Board (FASB) and International Accounting Standards Board’s (IASB) have been working toward “convergence” of US General Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). They have made significant progress in efforts to converge critical accounting standards such as those dealing with revenue recognition, financial instruments and leases. Once these projects are complete, the "era" of convergence will be at an end. Nevertheless, the benefits for investors of eventually getting to consistently applied, high-quality, globally accepted accounting

Krishnan, S., & Lin, P., C.M.A. (2012). Inventory valuation under IFRS and GAAP. Strategic Finance, 93(9), 51-58. Retrieved from http://search.proquest.com/docview/1016754559?accountid=458

Over a decade ago, it was believed that the whole world would likely adopt the Generally Accepted Accounting Principles (GAAP). At the point in time, the International Financial reporting Standards (IFRS) was only about ten years old. In the last decade, the IFRS has been adopted in many growing countries. Currently, it is anticipated that the U.S. will converge its GAAP with the international IFRS, leaving behind only a modified IFRS. This may occur as early as 2014.

Assessing the impairment of long-lived assets are slightly different. At first both GAAP and IFRS test for impairment if indicators exist, but it is the test that is different. GAAP has two steps that need to be followed in order to assess the impairment. First, it needs to assess if the impaired asset is recoverable, if not, then it proceeds to the next step, which is to calculate the impairment loss. IFRS has only one step, which is to calculate the recoverable amount. If the recoverable amount is less than the carrying amount – value of asset after deducting depreciation – then the carrying amount needs to be reduced to the recoverable amount and the difference between them is the impairment loss (Earnest & Young, 2011 a).

As of today, there are still many differences between U.S. GAAP and IFRS, but this term paper is to research on some accounts that impacted or will impact the financial statement reporting when U.S. GAAP converged with IFRS, focusing on these accounts: extraordinary items, warranty expense accruals, acquisition costs, capitalized leases, inventory, and ing contingency.

A Comparison and Contrast Analysis of U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)

Within the accounting profession, there have been challenges to develop a set of standards that are generally accepted and universally practiced. Thus far, the main debate in setting accounting standards is “Whose rules should we play by, and what should they be?” While the answer is unclear, users of financial statements and reporting must find methods that has an universal objective, that allows “Grapes for Grapes” comparisons that clearly, fairly, and completely prepares a company financial statements. For years GAAP has been the common set of standards and procedures for the U.S, the core for establishing a principle of reporting but now IFRS an international friendly financial reporting system has become popular for its use globally.

The purpose of this publication is to assist you in understanding the significant differences between International Financial Reporting Standards (IFRSs) and U.S. Generally Accepted Accounting Principles (U.S. GAAP). This publication does not discuss every possible difference; rather, it is a summary of those differences that we have encountered most frequently in practice, resulting from either a difference in emphasis or specific

The generally accepted accounting principal (GAAP) and international financial reporting standard (IFRS) are standards governing how economic events are reported. In the United States, the Securities and Exchange Commission (SEC) relies on the FASB, the accounting standard-setting body of the US, to develop accounting standards that public companies must follow when publishing financial statements. On the other hand, many countries outside of the Unite States have adopted the International Financial Reporting Standard (IFRS) which

After a thorough analysis of several U.S. accounting failures such as those at ENRON, Worldcom, and others, individuals in the European Union and around the world claim that had the U.S. followed International Financial Reporting Standards, instead of U.S. GAAP, these debacles might never had happened. For many years, the accounting profession had faced several challenges developing a set of guidelines that would be generally accepted and universally practiced around the globe. In more recent years, more than 100 countries around the world, have adopted International Financial Reporting Standards in order to settle on a common worldwide accounting language. In today’s business world, the marketplace is demanding for increasing conformity. As gradually more companies start to adopt IFRS, a need for a single set of high quality standards rises and poses pressure on the United States to converge.

For those in the business world, particularly in the accounting field, a major issue has surfaced in recent years relating to the differences between Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Currently, the majority of countries in the world follow International Financial Reporting Standards guidelines; however, the United States still uses GAAP. This topic has been a main focus because there is a plan for convergence between the two frameworks in the near future. The United States accounting system will undergo drastic changes when this occurs, but

There is a lot going on in the US accounting world at this time. Businesses are trying to gear up for the changes that are happening to their books. IFRS and US GAAP are in the process of convergence so businesses can be on the same page when conducting business globally. There are more similarities than differences between IFRS and US GAAP when you compare the presentation of their financial statements (US GAAP versus, 2015). This paper will take a look at the similarities and differences of the two frameworks, and how various accounting practices affect the presentation of financial statements for IFRS and US GAAP.

For decades, countries have designed their individual accounting standards principle-based, rules-based, tax-oriented, or business-oriented. Globalization has led to the greater needs with regards to harmonizing the standards (Kimmel, 2013). By late 1990’s the dominant standards were the IFRS (International Financial Reporting Standards) and U.S. GAAP (Generally Accepted Accounting Principles). Thus, both the standard setters namely; FASB (Financial Accounting Standards Board) and IASB (International Accounting Standards Board) launched a convergence project prior to the IFRS being essentially adopted by several countries. Measures are being taken to reduce likely impacts the frameworks would have on financial statement and reduction of last minute changes (Kimmel, 2013).

There are several regulatory bodies, both national and international, that controls the accounting system of companies. The United States General Accepted Accounting Principles (GAAP) is a rules-based accounting body that provides guidelines on how US firms accounting systems should operate. On the other hand, International Financial Reporting Standards (IFRS) is principles-based international regulatory guidelines used internationally. Revenue recognition by the two bodies differ greatly making the (Shamrock, 2012)