Similarities And Differences Between Gaap And Ifrs

1470 Words Nov 6th, 2015 6 Pages
Similarities and Differences of GAAP and IFRS

Haotian Guo

In 2014, a study from PricewaterhouseCoopers pointed that American investors are looking over-seas’ capital market for investment opportunities, and foreign investors are also looking for investing opportunities in America. According to the research from PricewaterhouseCoopers in 2014, an estimates shows that there are around seven trillion US dollars are invested in foreign stock markets, and American markets are open to non-US firms too. Many of the foreign companies use IFRS rule without any reconciliation to GAAP.
In the major international market, there are currently only four countries do not require IFRS rules, and they are China, Japan, India, and the US. Pacter (2015) explained that presently there are one hundred and forty jurisdictions around the world need to have the completion of IFRS, and one hundred and sixteen countries require IFRS as their account rule. The IFRS can affect American business in many ways. The development of international business bring more and more non-US shareholders to American firms, and the potential stockholders may wish to have an IFRS financial statement to view the financial situation of the company. IFRS reports are moreover significant when American companies looking for buyers or capital in European countries. The understanding of the similarities and differences of GAAP and IFRS can give an assistance to these investors and investees to have a…
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