International Financial Reporting Standards

Holly Shilling Dr. David Morris March 20, 2016 Accounting 2102 International Financial Reporting Standards Say you want to buy stocks in a cell phone manufacturing company. How do you know which company to invest in? A good business plan would be to compare the financial statements for each competing company. A task as such would be nearly impossible if there were not a standard system of financial records. In 1973, with the growing amount of international trade, the International Accounting Standards Committee decided to create a set of new accounting standards for the European nations. The International Financial Reporting Standards (IFRS) were created in an attempt to communicate easily tradable financial records for the countries of Europe…

to the SEC The International Financial Reporting Standards, also known as IFRS, are a set of accounting principles that are used globally. They were created by IASB, the Independent Accounting Standard-Setting Body. Over the past several years, the U.S. Security and Exchange Commission, also known as the SEC, has provided information and commented on whether or not investors and issuers of financial statements should use International Financial Reporting Standards to prepare their financial…

International Financial Reporting Standards are a set of high quality and complex accouting standards for the preparation of consolidated financial statements. International Accounting Standards Board set a mission to develop IFRS to promote transparency, accountability and economic efficiency in global capital markets (IFRS 2015). By regulating the financial reporting globally, IFRS enhance financial reporting transparency. Adopting IFRS, euqities are required to disclose financial performance…

Introduction Generally accepted accounting principles (GAAP) are defined as the common set of accounting principles, standards and procedures that companies must follow when they report their financial statements. It is aimed at improving the clarity of the communication of financial information. International Financial Reporting Standards (IFRS) on the other hand, is referred to as a single set of accounting standards, created and enhanced by the International Accounting Standards Board (IAS)…

In 2008, the US Security and Exchange Commission announced its plans to force US companies to switch from the General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS). In the US, GAAP are the accounting procedures that companies are required to follow when generating the company’s financial statements. (Investopedia, n.d.) While the IFRS is the international accounting standards in which business transactions are reported in financial statements.…

325 trillion. To record these transactions, these firms manage a large amount of data. Accountancy boards standardize the methods these companies use to record financial information. To facilitate the business flow, the boards have cooperatively created a new revenue reporting standard. The boards have also outlined the basic steps all firms should take when making the transition. Depending on the entity, the boards expect firm’s to adopt these new practice by a given date. Managing Financial…

Financial reporting communicates what a company’s financial and operational condition is at any specific time. To make the reporting clear and concise, the Financial Accounting Standards Board (FASB) created the Generally Accepted Accounting Principles (GAAP) which is a set of standards that includes a set of codes that provide structure and organization. (Spiceland, Sepe, & Nelson, 2013, pg. 10) Similarly, international countries have created their own set of accounting standards. However, in…

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…

In accounting terms, the process to harmonize the prevailing accounting standards that are issued by different regulatory bodies is called convergence. Although it is a known fact that the variety of accounting rules and practices around the world is due to the differences in culture, language, religion, education, and ideology and politics. However, the need of a single set of standards for the reporting of financial statements is becoming inevitable. With the significant growth of the…

VICTOR HO The International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) are rules and guidelines established to attempt to standardize accounting and recording practices across the United States and Internationally. While United States has traditionally used GAAP, the ever changing world market makes it necessary for the US to begin to use IFRS in conjunction with or sometimes in place of GAAP. In an effort to standardize fair value measurements…