International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.
Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.
Financial Accounting Standards Board (FASB): FASB is the organization which creates, develops, and approves accounting standards; and administrates GAAP.
Securities Exchange Commission (SEC): This is the government agency that governs the working of FASB and financial markets in the Country U.
To examine: The differences between (A) adoption of IFRS by Securities Exchange Commission (SEC), and (B) convergence of GAAP with IFRS
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EBK FINANCIAL & MANAGERIAL ACCOUNTING
- Discuss the primary differences between U.S. GAAP and IFRS with respect to investments.arrow_forwardDetermine the impact that specific differences between IFRS and U.S. GAAP have on financial statements, and prepare adjustments to convert IFRS balances to U.S. GAAP.arrow_forwardContrast U.S. GAAP financial statement terms with their different IFRS terms.arrow_forward
- What is the primary difference between interim reports under IFRS and U.S. GAAP?arrow_forwardHow is U.S. GAAP accounting different from international accounting? What are the key differences? And what rationale drives these differences?arrow_forwardWhat does the term functional currency mean? How is the functional currency determined under IFRS and under U.S. GAAP?arrow_forward
- Discuss the primary differences between U.S. GAAP and IFRS with respect to thebalance sheet, financial disclosures, and segment reportingarrow_forwardWhat is the major difference between the approach of international financial reporting standards versus U.S. GAAP accounting? What are the advantages and disadvantages of each?arrow_forwardPlease explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. current liabilities, provisions, employee benefits, share-based payment, income taxes, revenue, financial instruments, leases).arrow_forward
- International fi nancial reporting standards are currently developed by which entity? C . Th e International Organization of Securities Commissions.arrow_forwardChoose the correct. What is the so-called Norwalk Agreement?a. An agreement between the FASB and SEC to allow foreign companies to use IFRS in their filing of financial statements with the SEC.b. An agreement between the U.S. FASB and the U.K. Accounting Standards Board to converge their respective accounting standards as soon as practicable.c. An agreement between the SEC chairman and the EU Internal Market commissioner to allow EU companies to list securities in the United States without providing a U.S. GAAP reconciliation.d. An agreement between the FASB and the IASB to make their existing standards compatible as soon as practicable and to work together to ensure compatibility in the future.arrow_forward
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