We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Convergence from GAAP to IFRS - Essay Example

Comments (0)
Convergence from GAAP to IFRS Author Institution Abstract The there are two key bookkeeping structures, employed by businesses; Generally Accepted Accounting Principles and International Financial Reporting Standards. Generally Accepted Accounting Principles are reviewed and determined by the Financial Accounting Standards Board, whereas the International Financial Reporting Standards are reviewed and determined by the International Accounting Standards Board…
Download full paper
Convergence from GAAP to IFRS
Read TextPreview

Extract of sample
Convergence from GAAP to IFRS

Download file to see previous pages... The paper will further discuss the benefits, which will accrue to United States firms, investors, and the economy as a whole, as a result of converging from United States Generally Accepted Accounting Principles to International Financial Reporting Standards. Convergence from Generally Accepted Accounting Principles to International Financial Reporting Standards Currently, International Financial Reporting Standards are used by more than 12,000 companies in the world and have been in use in over 100 countries around the globe. According to Kaiser et al. (2012), there are various ongoing projects, which were initiated by the International Accounting Standards Board and the Financial Accounting Standards Board with an aim of enhancing the International Financial Reporting Standards and America Generally Accepted Accounting Principles, and eventually making the principles fully compatible. Majority of these projects covers the key components of the financial reports. Through these projects, the boards plan to enhance financial disclosure information for shareholders while also aligning U.S. GAAP and international bookkeeping standards. Revenue recognition, financial instruments, and leases are deemed as the priority projects largely as a result of existing difference of IFRS and U.S. GAAP and the necessity for enhancements, especially in the principles they are intended to replace. The boards have also concentrated on financial reports presentation and consolidations projects due to considerable implications they might have (Kaiser et al., 2012). According to Henson (2012), in late 2011, SEC Chief Accountant, James Kroeker, indicated that considerable progress had taken place on numerous IASB and FASB Memorandum of Understanding convergence projects encompassing other comprehensive financial and income reporting fair value guidance. In January 2012, the chairman of IASB, Hans Hoogervorst acknowledged that International Financial Reporting Standards pose several challenges for the SEC. U.S. uses a sophisticated, mature and time stated set of bookkeeping standards, and this makes it difficult to make the convergence decision. In June 2012, IASB and FASB agreed on lease bookkeeping model where all leases with a period of one year or more would be reported on the balance sheet. Hans Hoogervorst indicated that the two boards anticipate completing the convergence project by year 2013 (Henson, 2012). The considerable progress in the convergence projects requires the United States companies, to start examining the implications of the convergence on their operations. This would enable companies to plan how to adopt the changes, which will arise from the convergence. This implies that, at the beginning of 2014, the U.S. public traded corporations might be obligated to file financial reports with the SEC using the International Financial Reporting Standards. In my opinion, it is beneficial for the United States to converge from America Generally Accepted Accounting Principles to International Financial Reporting Standards. The convergence has various challenges and advantages. The challenges facing the transition may be addressed appropriately by all stakeholders involved in the convergenc ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
US GAAP IFRS Convergence
The research demonstrates that the manner in which the FASB, IASB and the SEC have been working towards achieving convergence between the US GAAP and IFRS is indeed questionable. Despite several delays, there appears to be commitment between both sides to achieve a universal accounting framework at the earliest.
9 Pages(2250 words)Essay
With this rapid globalization, there has been a growing need towards convergence of accounting standards. Financial statements are becoming extremely important for investors and their comparison is becoming vital to the capital markets of the world. It is due to this reason that the financial accounting standards board (US) and International accounting standards board (UK) have taken the initiative to converge their accounting standards in order to eliminate the differences.
4 Pages(1000 words)Essay
Convergence between GAAP and IFRS
The financial reports contain several key projects to be addressed by both IASB and FASB such that the financial disclosures require further enhancement as well as alignment with the existing standards issued by IASB and FASB. Currently, the key projects which are required to be considered further, are revenue recognition, leasing and financial instruments.
4 Pages(1000 words)Essay
IFRS and GAAP Convergence
The main objective of financial reporting is to communicate to investors, creditors, and other interested parties the financial outcomes of a business in a understandable and useful way. The basic responsibility for reporting those financial outcomes rests with the business’s management.
4 Pages(1000 words)Essay
Earnings per share FASB project on convergence with the IFRS
The International Accounting Standards Board (IASB) and the FASB acknowledge that the convergence of International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP) is the primary objective of both boards.
9 Pages(2250 words)Essay
Comparison of IFRS and US GAAP
The information is of importance to management, investors, creditors, employees and other government organizations. Financial statements are written reports describing quantitatively the financial health of a company. An income summary shows the income and expenditure of a firm or a balance sheet shows the assets and liabilities and equity of a company are all examples of financial statements.
10 Pages(2500 words)Essay
What are the implications of differences between reporting by IFRS and US GAAP reporting by UK Investment banks and US GAAP reporting by US investment banks
tates companies abide by the Generally Accepted Accounting Principles, while in Europe companies abide by the International Financial Reporting Standards. The utilisation of each of these frameworks affects the information contained within them. This proposal studies the effect
16 Pages(4000 words)Essay
IFRS and GAAP Convergence
The most commonly followed standards are the IFRS and the US GAAP. International Financial Reporting Standards (IFRS) are the principle-based accounting standards
3 Pages(750 words)Essay
In this writing assignment you must discuss and compare the existing GAAP standards with the comparable IFRS standard for either IFRS IAS 17: Leases or IAS 18: Revenue. (By the way, these links go to the actual discussion of what makes up these categorie
The two chief accounting standards FASB and IASB have debated and negated the move to pushthe USAtowards global rules. The SEC allows foreign companies that sell stock in the US to compile their monetary statements using IFRS. While the merging of IFRS and the US GAAP
3 Pages(750 words)Essay
The most outstanding difference between the two is that while the GAAP is based on rules, the IFRS is based on principles. Unlike a rule based system, the principle based system allows for different interpretations of similar
4 Pages(1000 words)Essay
Let us find you another Essay on topic Convergence from GAAP to IFRS for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us