The Difference Between GAAP And IFRS

2274 Words 10 Pages
Register to read the introduction… Historically, the documents that comprised GAAP varied in format, completeness, and structure, making it difficult to determine what was authoritative and what was not. In response to such concern, the FASB developed the Financial Accounting Standards Board Accounting Standards Codification, or “the Codification”. The primary goal of the Codification is “to provide in one place all the authoritative literature related to a particular topic. This will simplify use access to all authoritative U.S. GAAP” (Kieso, Weygandt, Warfield 14). Despite efforts made to improve its accessibility, the biggest issue with GAAP remains to be the fact that it is unusable in any other country than the U.S. Companies “outside of the United States often prepare financial statements using standards different from U.S. GAAP. As a result, international companies…have to develop financial information in different ways. Users of the financial statements often must understand at least two sets of accounting standards” (Kieso, Weygandt, Warfield 20) which can be difficult and very expensive.
Although
…show more content…
For convergence of GAAP and IFRS is not quite set in stone yet, further changes can be expected in the next few years until all projects are completed IFRS is officially implemented in the U.S. by SEC. Finding details and updates of the progress of the convergence is easy and highly encouraged. The most informative and reliable sources include but are not limited to: www.ifrs.org, www.sec.gov, www.fasb.org, www.pwc.com, www.kpmg.com, www.ey.com and www.journalofaccountancy.com. Most disclosures, announcements, and progress reports related to the topic of this convergence can be found through these

Related Documents