The conversion from GAAP to IFRS - a brief summary and analysis

BackgroundFor decades the US financial market has adhered to ?if you want to summercater, you have to romance by our rules?. The rules are the in general sure account Principles, comm exactly abbreviated as U.S. generally accepted account principles, or simply generally accepted accounting principles. estimable little than a year ago, there was the groundbreaking reasoning by elimination of generally accepted accounting principles requirement for International pecuniary insurance coverage Standards (IFRS) account outside(prenominal) issuers, due to a strong global support for IFRS. and beca drop on August 27th 2008, the Securities Exchange Commission released the succeeding(a) on its website:The Securities and Exchange Commission today voted to publish for exoteric detect a proposed Roadmap that could lead to the usage of International Financial Reporting Standards (IFRS) by U.S. issuers beginning in 2014. Currently, U.S. issuers use U.S. Generally Accepted Accounti ng Principles (U.S. generally accepted accounting principles). The Commission would make a close in 2011 on whether adoption of IFRS is in the public lodge in and would benefit investors. The proposed multi-year plan chastens out several milest ones that, if achieved, could lead to the use of IFRS by U.S. issuers in their filings with the Commission. The transition from U.S. GAAP to IFRS reporting supply have a huge impact for investors and businesses in the U.S. Although unless a roadmap was issued and no conversion dates were announced, it is speculated that IFRS reporting will to a greater extent than likely become mandatory. As one expert Dr.

Barry J! ay Epstein predicted more(prenominal) than ten years ago, ?maintaining two sets of accounting standards would be unsustainable in a truly global economy? (IFRS GAAP). some(prenominal) stakeholders and precaution are containting tired of multiple GAAP reporting and reconciliations. GAAP VS IFRSFirst, what is the major distinction between GAAP and IFRS? GAAP has been in use for more than seventy years, and occupies a nine-inch, three-volume set of pronouncements. IFRS, which has only been around for a decade, If you want to get a full essay, order it on our website: BestEssayCheap.com

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