GAAP Or Generally Accepted Accounting Standards Board (FASB)

Implementing GAAP and IFRS will reduce huge transition cost that may occur in the future. Due to this difference between GAAP and IFRS, the transition cost from GAAP to IFRS is very high. If a company wants to change accounting reporting method, it must report the current year, pervious year or years depend on the situation and the first year started to report financial statements using the new-implemented method (Kieso Et al., Chap. 5, ETB). It cost a lot for the company to do so.

IFRS is similar in concept to that of GAAP. IFRS is unique in that is applies to more international countries. The IFRS was

The International Accounting Standards Board (IASB) was formed in an attempt to bring uniform accounting standards within international countries through its issuing of the International Financial Reporting Standards (IFRS). Today, over 100 countries including Canada, India, and Japan have adopted these standards for financial reporting. The growth of multinational companies such as Coca Cola and the increasing desire of cross-border investing have made it apparent that the U.S.accounting standards known as the Generally Accepted Accounting Principles (GAAP) issued by the Financial Accounting Standards Board (FASB) can no longer remain separate from IFRS. Under the request of the Securities and

There are several differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). The IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based", IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP. As a team me collaborated to answer the following seven questions.

In 1973, the Financial Accounting Standards Board (FASB) was created and their mission is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.” (FASB.org, 2009a). The FASB is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. Therefore, the FASB plays a vital and important role in protecting the financial well being and the overall stability of our

There is no universal GAAP standard and the specific vary from one geographic location or industry to another. In the United States, the Securities and Exchange Commission (SEC) mandates that financial reports adhere to GAAP requirements. The financial accounting standards Board (FASB) stipulates GAAP overall and the Governmental accounting standards Board (GAAP) stipulates GAAP for state and local government. Publicly traded companies must comply with both SEC and GAAP requirements. In recent years it also has had the chance to look at the United States Generally Accepted Accounting Principles (GAAP) and modify the rules to enhance clarity and consistency, intentionally setting itself apart from U.S. GAAP. The convergence of these two accounting frameworks is a must for both foreign and domestic businesses. The International Financial Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan, Canada, and other world economic leaders. Companies need an accurate and reliable financial accounting systems not matter if globally or in the United

The International Financial Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan, Canada, and other world economic leaders. The IFRS is based on the tenets of understandability, reliability, and comparability. It is based off the International Accounting Standards (IAS) and had the opportunity to be built from accounting ideas and principles used across the world. In recent years it also has had the chance to look at the United States Generally Accepted Accounting Principles (GAAP) and modify the rules to enhance clarity and consistency, intentionally setting itself apart from U.S.

The United States Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) have both similarities and differences that must be explored. In 2002 the similarities became more concrete and the differences were mitigated with the Norwalk Agreement, which was a memorandum of understanding between the United States and the International Accounting Standards Board (Financial, 2002). The agreement stated that the two sides were both looking for compatible accounting standards that could be used in both cross-border and domestic reporting (Financial, 2002). By making the US standards and other accounting standards compatible with one another, there is a higher chance of helping investors determine which companies would be the best choice for them. It is also easier for mergers and acquisitions, as well as other financial transactions between companies, if the accounting requirements are very similar between the US and other countries, since fewer discrepancies are seen (AICPA, 2008; American, 2009).

The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public 's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. It was created in 1973, replacing the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certified Public Accountants. The Financial Accounting Standards Board 's mission is "to establish and improve standards of financial accounting and reporting for the guidance and

There are huge differences between the juvenile and adult justice systems. A juvenile is a person under the age of 18. An adult in most circumstances is anyone over the age of 18, sometimes over 21. An adult who breaks the law is committing a crime. A juvenile, however, who breaks the law is committing a delinquent act.

Chevis (2014) addresses two of the bigger, but lesser-known, differences between GAAP and IFRS. The two differences addressed, contingencies and depreciation, are the interpretations an accountant has to make on terms not specifically defined by IFRS or GAAP. IFRS is considered to be more “aggressive” for investors while GAAP is considered “conservative” (p. 19). Smith (2012) states IFRS is more principle based, while GAAP is more ruled based. GAAP documents would total over approximately 25,000 pages if printed. IFRS documents would total approximately 2,000 (p. 21).

The Securities and Exchange Commission has time and again stated its commitment to shift from GAAP without any forthcoming efforts (Street 258). Despite the slow pace as compared to the other countries that are rapidly changing, the change has become apparent. The SEC allowed financial statements from foreign companies listed on the domestic stock exchanges with IFRS. However, the general approach of the United States to the matter has been of a cautious nature. The SEC adopted a

By eliminating many international differences in accounting standards, IFRS eliminate many of the adjustments people have made in order to make companies’ financials more comparable internationally. The adoption of IFRS reduced the cost for investors to process financial information. The gain would be extremely important for institutions that create large financial database. (International Accounting Policy Forum, 2006).

There are two major similarities or points of convergence between US GAAP and IFRS. The first similarity is with regards to objectives of financial. In this case, both IFRS and US GAAP take the same general position with regards to objectives of financial reporting. The two main objectives shared by the two accounting bodies are relevancy of

IFRS is an international accounting standards that were developed by the International Accounting Standards Board (IASB). These standards define how a company should report its financial statements based on accounting principle rather than “rules-based accounting standard” like US GAAP (Dumont, 2012). According to AICPA, IFRS standards can help businesses to have the same financial statements like their competitor as well as attracting foreign investors. In addition, a company that has subsidiaries in different countries would have a uniform financial statements company wide. However, convergent process can pose a serious issue for U.S. businesses in terms of financials and internal controls due to the fact that US GAAP focuses more on details for reporting purposes. Many U.S. companies believe that US GAAP is the golden rule and the huge amount of converting cost would offset the benefits that IFRS offers (AICPA, 2015).