The Principles Of Financial Statement

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Introduction The purpose of financial statement is to provide entities form employee’s to government organizations to include all stakeholders viable and reliable information that effects strategic decisions. With the differences between the U.S. GAAP and IFRS pose problems over the an acceptable accounting flaws that exist with in standards of accounting practice relevant to manipulate the system that has been adopted. Via Turner Investments (2016) a CPA blogger says "Anyone who believes all countries can embrace international accounting standards and use those standards in the same way is dumber than a sack of rocks, The New York Times Web site.” Additionally, as cited by Hassan (2015) of Zhou and Chen that “the reason why banks manipulate earnings is supported by three arguments: signaling argument, income smoothing or earnings management argument and capital management argument” (p. 93). Further in concern, is a statement by American Institute of Certified Public Accountants (AICPA) that the “U.S. GAAP must go” declared in Forbes.com that the system can “collapse under its own weight” due to playing and construing financial records (Turner Investments, 2016). The regulation heavy U.S GAAP bares constraints and needs to be more user-friendly as with the IFRS standards given way to a universal international accounting system reflective of the times we live in. Problem Could the U. S. adhere to the IFRS? The problems with the convergence is many, with few solutions, to find
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