According to current literature, the global movement to adopt International Financial Reporting Standards (IFRS) is the paramount financial reporting issue of the 21st century. More Than 100 countries in the world use IFRS as the basis of financial reporting.
The U.S adopted the idea of IFRS in 2002. Based on a proposed timetable developed by the U.S. Securities and Exchange Commission, acceptance of IFRS is critically important to management accountants, auditors, financial analysts, corporate executives, and others involved with financial Reporting. In this paper, I am going to talk first about the differences between U.S. GAAP and IFRS; then I am going to talk about the similarities between U.S. GAAP and IFRS; and finally I am…show more content… On the other hand, the International Financial Reporting Standards (IFRS) also require that the comparative information should be disclosed with respect to the previous period for all amounts reported in the current period’s financial statements. (.imanet.p,)
2. Layout of the balance sheet and income statement: This financial statement summarizes a company 's assets, liabilities, and shareholders ' equitant in it period. These balance sheets give investors an idea as to what the company owns and owes. The US GAAP didn’t have a general requirement to prepare the balance sheet and income statement in accordance with a specific layout, on another hand, companies most present the detail in requirements in Regulation S-X (Regulation S-X is a prescribed regulation that lays out the specific format and content of financial reports). It is cited as 17 C.F.R. Part 210; the name of the part is "Form and Content of and Requirements for Financial Statements, Securities Act of 1933, Securities Exchange Act of 1934, Public Utility Holding Company Act of 1935, Investment Company Act of 1940, Investment Advisers Act of 1940, and Energy Policy and Conservation Act of 1975". - ,) but International Financial Reporting Standards (IFRS) does not prescribe a standard layout, but should include a list of minimum line items. Those minimum line items are less prescriptive than the requirements in Regulation SX. (ey.com/US/en/Issues/IFRS)