Explore BrainMass
Share

US vs International Financial Reporting Standards

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Where does the U.S. stand with IFRS now?

© BrainMass Inc. brainmass.com October 17, 2018, 3:42 am ad1c9bdddf
https://brainmass.com/business/international-finance/us-vs-international-financial-reporting-standards-433678

Solution Preview

Topic: US vs. International Financial Reporting Standards -Where does the U.S. stand with IFRS now?

Answer:

The GAAP stands for Generally Accepted Accounting Principle. GAAP are the common set of accounting principles, standards and procedures that companies use to compile their financial statement. GAAP are a combination of authoritative standards and simply the commonly accepted ways of recording and reporting accounting information [1]. In USA, Financial Accounting Standards Board (FASB) sets GAAP standard and outside USA, the equivalent of GAAP is IAS (International Accounting Standards), maintained by IASB (International Accounting Standards Board). International Financial Reporting Standards (IFRS) are principles-based standards, interpretations and the framework (1989) adopted by the International Accounting Standards Board (IASB).

US GAAP vs. IFRS:

Approximately 100 countries require, allow or have a policy of convergence with IFRS. Countries such as Japan, the United States and Canada have active programs designed to achieve convergence with IFRS. To be sure, not all countries that claim to have adopted IFRS have adopted standards that are entirely consistent with IFRS. Nevertheless, there is undoubtedly a global movement toward convergence. Because of ongoing convergence projects, the extent of the differences is constantly shrinking. Among the huge number of differences between IFRS and U.S. GAAP, some of the differences are discussed below [2]:

In the case of inventories: IFRS permits an entity to reverse inventory write-downs in certain situations, whereas U.S. GAAP does not. IFRS also requires the recognition of certain development costs that U.S. GAAP accounting does not recognize. In valuing inventory under IFRS, LIFO is prohibited [2].

In case of pre-operating and pre-opening Costs: The differences between ...

Solution Summary

The GAAP stands for Generally Accepted Accounting Principle. GAAP are the common set of accounting principles, standards and procedures that companies use to compile their financial statement. GAAP are a combination of authoritative standards and simply the commonly accepted ways of recording and reporting accounting information [1]. In USA, Financial Accounting Standards Board (FASB) sets GAAP standard and outside USA, the equivalent of GAAP is IAS (International Accounting Standards), maintained by IASB (International Accounting Standards Board). International Financial Reporting Standards (IFRS) are principles-based standards, interpretations and the framework (1989) adopted by the International Accounting Standards Board (IASB).

Kindly see detailed solution...

$2.19
Similar Posting

International Accounting Standards Board (IASB)

Write a report, providing your responses to the required portion of the case. Be sure to properly cite all resources used to write your report. If you use an electronic source, include the URL. If you use an additional printed source please attach a copy of the data to your paper.

CASE:
A manager you work for is making a business trip to London. The manager has several meetings at the company's operating units in London. In addition, the manager is considering a visit to the International Accounting Standards Board (IASB) office in London. The manager has asked you to perform some research on the IASB so that he will have some background information for his visit. (Hint: A helpful search term is "International Accounting Standards Board"). Locate the following information and incorporate this information into a two- to three-page report.

REQUIRED PORTION:

a. Provide a brief history or discussion of the IASB, making sure to include the following additional facts:

(1) The role of the IASC Foundation.
(2) Structure of the IASB.
(3) Number of accounting standards currently published.
(4) Explanation of the steps involved in creating an international accounting standard in accordance
with due process.
(5) Local mailing address and phone number.

b. Briefly summarize the two most recent accounting standards issued by the IASB.

Be sure to properly cite all resources used to write your report. If you use an electronic source, include the URL. If you use an additional printed source please attach a copy of the data to your paper.

View Full Posting Details