The Principle Based International Financial Reporting Standards Essay

2016 Words9 Pages
Executive Summary The purpose of this report is to research the principle based International Financial Reporting Standards (IFRs and its United States counterpart, the Financial Accounting Standards Board (FASB). I will analyze how they would affect the financial reporting for a corporation that is publicly traded and operates internationally. In the report, I will analyze three topics that contain reporting differences between United States GAAP and IAS/IFRS. Following the analysis, three recommendations regarding changes that will need to be made in order to adhere to the IFRS guideline will be provided.

Introduction The International Accounting Standards Board (IASB) is the premier accounting standards setting body used in over 120 countries worldwide, comprised of 14 experts appointed from the international community (Members of the IASB, 2016). They set the conditions for those that fall under their jurisdiction through publications from the principle-based International Financial Reporting Standards (IFRS). These conditions include, though not limited to, a company’s financial statements. In the United States, there are many different groups that influence the accounting perspective, boiling down to a rule-based comprehensive framework called Generally Accepted Accounting Principles (GAAP). Groups that influence GAAP is the Securities and Exchange Commission, who oversee all publically traded firms’ financial statements in the United States.
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