The International Financial Reporting Standards

1831 Words8 Pages
There have been plenty of debates surrounding the two type standards; on one side we have the United States General Accepted Accounting Principle (GAAP) which has always been used until now with International Financial Reporting Standards (IFRS). A committee of accountants from the American Institute of Accountants (AIA) created the first set of US GAAP standards in the 1930s. US GAAP is a set of guidelines made to help publicly traded companies create their financial statements. The International Financial Reporting Standards (IFRS) serves a similar purpose, but has been globally accepted. European companies first adopted IFRS in 2005, and by 2012 countries such as Japan, Canada, and India had done the same. Since early 2010, FASB and IASB have been working together to converge both of these accounting standards. The SEC has been on board, and although they have not been successful yet, a Work Plan has been developed which lays out factors, which need to be considered before transitioning into a new reporting system. The main topic for this paper is pension and how both differ from GAAP and IFRS. In the research, it will mainly geared towards pension plan and the benefits that differ between the U.S GAAP and IFRS. Through the research the main information comes from the income statement of the company to identify the difference. Motivation The increasing numbers of multinationals, poor macroeconomic conditions and other factors have led many US companies to consider a
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