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 shimmer by our rules?. The rules are the in general genuine account Principles, comm exactly abbreviated as U.S. generally accepted account statement principles, or simply generally accepted accounting principles. dependable little than a year ago, there was the groundbreaking evacuation of generally accepted accounting principles requirement for International pecuniary reportage Standards (IFRS) line outside(prenominal) issuers, due to a strong global support for IFRS. and whence 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 chin wagging 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 social occasion U.S. Generally Accepted Acc ounting 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 stars 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 contain have a huge impact for investors and businesses in the U.S. Although save 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 Jay Epstein predicte! d 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 irritateting 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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