us gaap vs ifrs essay

There are vast and numerous differences between US GAAP and IFRS. The biggest conceptual difference between US GAAP and IFRS is that US GAAP is rule based while IFRS is principle based. Because of this, there are numerous accounting topics that are handled differently between US GAAP and IFRS. It is argued that IFRS fits the actual economics of business transactions more than US GAAP, as IFRS looks more at the substance of transactions. US GAAP, on the other hand, is more concerned with having exact

IFRS vs U.S. GAAP Victoria Harris American Public University Acct 610 There are two sets of accounting standards that are used worldwide. One is the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). There is a huge desire for there to one set of accounting standards worldwide with the increase of companies performing business in many different countries and global expansion. The International Financial Reporting Standards are issued

Brianna Martin May 4, 2016 Dr. Serrano-Garcia ACCT 4270-01 IAS/IFRS vs. US GAAP: IAS 38 IAS 38 is an accounting standard regarding intangible assets. It supplies accounting rules for intangible assets that are purchased, acquired in a business combination, and internally generated. According to Investopedia, intangible assets are nonmonetary assets without a physical presence, that have useful lives greater than one year. This type

with IFRS. Different countries develop their own accounting standards based on their unique rules, principles, business base, and tax; however, with globalization it’s very important to reconcile between different accounting standards. Two major standards are the US GAAP and IFRS, and they share many differences and similarities. One of the main differences is the conceptual approach and framework, IFRS is principle based whilst US GAAP is rule based (Forgeas, 2008). When comparing IFRS and US GAAP

US GAAP versus IFRS Due to the controversy economies have had towards which method to use for accounting, there has been a compromise to converge the two most commonly used methods – GAAP and IFRS. However, these two methods are still very different. The convergence project has yet to be completed; in the meantime, more and more countries are running towards the IFRS since it is more reliable and relevant. The main difference between these two methods is the US GAAP is rule-based while the IFRS

9/27/11 Acct-461V GAAP vs. IFRS Over a decade ago, it was believed that the whole world would likely adopt the Generally Accepted Accounting Principles (GAAP). At the point in time, the International Financial reporting Standards (IFRS) was only about ten years old. In the last decade, the IFRS has been adopted in many growing countries. Currently, it is anticipated that the U.S. will converge its GAAP with the international IFRS, leaving behind only a modified IFRS. This may occur as early

Functional Currency There are some major differences between IFRS and US GAAP concerning use of the functional currency in the financial statement presentation. While some of the measures are similar between the two, some are very different. Although, under IFRS, some state they are just similar to GAAP. For 2009, under IFRS, the functional currency would be US dollars because, "greater emphasis is placed on the currency of the economy that influences sales prices for goods and services." (Epstein

In this research project, we will be comparing the similarities and differences between IFRS (International Financial Reporting Standards) and GAAP(Generally Accepted Accounting Principles), specifically in the cash flow statement, and we will be using Apple vs Samsung’s financial statement and stock price to compare the similarities and differences between IFRS and GAAP. 2. Motivation(Vicki) Today, with increasing globalization in the business world, many investors are looking for opportunities

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

comparisons that clearly, fairly, and completely prepares a company financial statements. For years GAAP has been the common set of standards and procedures for the U.S, the core for establishing a principle of reporting but now IFRS an international friendly financial reporting system has become popular for its use globally.