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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Chapter AC Solutions
Financial & Managerial Accounting
- Discuss similarities and differences between the accounting treatment for U.S. GAAP and IFRS if any from the topic you selected.arrow_forwardExplain the origin and expansive role of the Securities and Exchange Commission.arrow_forwardWhat does the term functional currency mean? How is the functional currency determined under IFRS and under U.S. GAAP?arrow_forward
- 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_forwardThe US GAAP provides rules and guidance for what two primary financial reporting purposes?arrow_forwardWhether or whether U.S. corporations adopt IFRS is dependent on the variations in how comparable data is presented under GAAP and International Financial Reporting Standards.arrow_forward
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