Gaap Vs Ifrs

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In this paper I will be comparing and contrasting the key differences and similarities of the two the International Reporting Standards (IFRS) and Generally Accepted Accounting Principles also known as GAAP. According to AICPA International Reporting Standards can be defined as “a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.” International Financial Reporting Standards is used in over 120 countries worldwide. (International Financial Reporting Standards, n.d.) IFRS is considered more of a "principles based" accounting standard whereas US GAAP is more of a principle based accounting standard.
Generally …show more content…
U.S GAAP uses the two step method whereas IFRS also uses a single-step method for impairment write-downs. Probability threshold and measurement objective for contingencies are different for the IFRS. Curing debt covenant violations after year-end are not allowed in IFRS whereas it is allowable in U.S GAAP. IFRS regulation in regards to revenue acknowledgement is less broad than GAAP and includes a lot less industry-specific instruction. (GAAP AND IFRS, STILL DIFFERENCES, …show more content…
These arguments will end up resulting in an increase of capital flow and international investments, this would further diminish interest rates and also help with economic growth. Timeliness and the availability of uniform information to all concerned stakeholders will also conceptually make for a smoother and more time-efficient process. Additionally, new safeguards will be in place to prevent another national or international economic and financial meltdown. (The impact of combining the U.S GAAP and IFRS,

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