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    GAAP vs IFRS CFO of large firm in Ireland to choose and why

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    If you were the CFO for a $10 billion-a-year international company headquartered in Ireland, which accounting rules would you recommend your company to follow: U.S. GAAP or IFRS? Are these rules comparable? What are the major differences between the two accounting standards? What was your rationale for choosing a rule?

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    Solution Preview

    If you were the CFO for a $10 billion-a-year international company headquartered in Ireland, which accounting rules would you recommend your company to follow: U.S. GAAP or IFRS?

    I would choose IFRS. (see why below)

    Are these rules comparable?

    Yes, they are comparable but not perfectly comparable. There are differences, some more cosmetic (like the order of assets on the balance sheet) and other more substantial (like the opportunity to write up assets that recover from impairment under IFRS (not allowed under US GAAP).

    What are the major differences between the two accounting standards?

    The major differences are in the level of ...

    Solution Summary

    Your discussion is 432 words and gives examples of accounting differences that are cosmetic and others that are substantial and how I decided on a framework that would be best. Reasons are given (pros and cons).

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