StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The US Generally Accepted Accounting Principles vs International Financial Reporting Standards - Term Paper Example

Comments (1) Cite this document
Summary
The paper "The US Generally Accepted Accounting Principles vs International Financial Reporting Standards" states US GAAP and IFRS have their similarities: from the basic framework to the concepts of materiality and consistency to the presentation of financial statements. While the specific guidance of these principles varies.
 …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.4% of users find it useful
The US Generally Accepted Accounting Principles vs International Financial Reporting Standards
Read TextPreview

Extract of sample "The US Generally Accepted Accounting Principles vs International Financial Reporting Standards"

Download file to see previous pages Although there are similarities between the two major accounting principles in the world, their differences are major and will affect greatly the entities affected by the conversion. In terms of the general, underlying principles and accounting for commonly – occurring transactions, the two principles are actually more similar than different. Despite these similarities, however, the approaches taken by the two principles are different (i.e., IFRS is principle-based while the U. S. GAAP is rule-based). In addition, major differences are also found in their accounting treatments for significant accounts and complex transactions. This article aims to compare and to contrast the U. S. GAAP and the IFRS. It takes into account the similarities and differences between these two accounting principles. It utilizes materials from various accounting firms and accounting standards board in its comparison. As this topic is so diverse (some publications comparing the two principles have over one hundred pages), only a basic comparison will be done in this article. A Comparison between IFRS and the U. S. GAAP
The 2006 Memorandum of Understanding or MOU (as updated in 2008) issued by the FASB and the IASB have set the path towards the convergence of U. S. GAAP and the IFRS. The MOU affirmed the two Board’s commitment to “developing common, high-quality standards” (FASB, 2009). The ongoing efforts to converge the U. S. GAAP with IFRS have raised a lot of concerns and a lot of questions as to how different or similar the two sets of accounting principles are. The following briefly compares the two principles and outlines their similarities and differences. General Comparison
Despite their differences, the “general principles, conceptual framework and accounting results” (Ernst & Young, 2009) between these two principles are basically the same or similar. In fact, according to Ernst & Young (2009), the accounting treatment for transactions that commonly occur in companies is the same under both principles. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The US Generally Accepted Accounting Principles vs International Finan Term Paper, n.d.)
The US Generally Accepted Accounting Principles vs International Finan Term Paper. Retrieved from https://studentshare.org/finance-accounting/1559567-international-reporting-financial-systemirfs-vs-gaap
(The US Generally Accepted Accounting Principles Vs International Finan Term Paper)
The US Generally Accepted Accounting Principles Vs International Finan Term Paper. https://studentshare.org/finance-accounting/1559567-international-reporting-financial-systemirfs-vs-gaap.
“The US Generally Accepted Accounting Principles Vs International Finan Term Paper”, n.d. https://studentshare.org/finance-accounting/1559567-international-reporting-financial-systemirfs-vs-gaap.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
is
isaiahschmeler added comment 1 year ago
Student rated this paper as
Wonderful work done on the "International Reporting Financial System(IRFS) vs GAAP". I think it is the best example I have seen so far.

CHECK THESE SAMPLES OF The US Generally Accepted Accounting Principles vs International Financial Reporting Standards

The Generally Accepted Accounting Principles and The International Accounting Standards

... The Conceptual Foundational Difference Between United States Generally Accepted Accounting Principles (GAAP), and The International Accounting Standards GAAP. Introduction Globalisation, along with the high rate of information, transactional, cross border and business freedoms, has brought the United States, Europe, Asia, South America and other regions into contact to the point where international transactions between companies is a daily occurrence for most publicly listed companies, as well as for many small and medium sized enterprises (SMEs). The preceding underscores the fundamental need for a globalised accounting standards system whereby the United States Financial Accounting Standards Board (FASB) and the International...
2 Pages(500 words)Term Paper

Generally Accepted Accounting Principles

...FINANCE AND ACCOUNTING al Affiliation) Key words: Financial ments, auditors, board of directors. INTRODUCTIONAll profit making organizations have an obligation to collect, summarize, and communicate its financial information. They do so by preparing financial statements used internally and externally by various users. The information presented in these financial statements should present the true and fair view of the company in a clear and concise manner for the entity and other external users. Generally Accepted Accounting Principles (GAAP) requires all organizations to present financial statements to maintain continuity and presentation of information across international borders (Gee, 2006). These financial statements act as guidelines...
6 Pages(1500 words)Essay

Generally Accepted Accounting Principles

...Generally Accepted Accounting Principles What are GAAP GAAP is the abbreviated form of Generally Accepted Accounting Principles that refers to the accounting standards that are to be followed in the process of financial accounting. The standards of accounting provide the guidelines to accountants in the preparation of financial statements and accounts in the jurisdiction and laws of any country. The conformance to the International Financial Reporting Standards, rules and conventions under GAAP leads to recording, summarization and reporting of financial statements that are comparable in international accounting context. The preparation of financial statements and accounts in accordance with the GAAP helps the capital markets to operate...
2 Pages(500 words)Essay

Law of Financial Services

For instance, the European Commission’s Regulation No. 1049/2001 which very specifically details rules and regulations governing the public access to European Parliament, Council and Commission documents. Article 8 of the regulation states that “personal data shall only be transferred to recipients … (b) if the recipient establishes the necessity of having the data transferred …” (Regulation 1049/2001). Although this law is not at all related to the data protection of banks and their customers, it does give us an impression of how serious the EC is in protecting the integrity of data.
In saying that the laws that we have on data protection have adequately addressed the needs of banks and custom...
6 Pages(1500 words)Article

International Security Studies: Examination

Globalization affects international security in the sense that problems involving terrorism, the environment, religious extremism, weapons of mass destruction, and the economic crises have become more universal and widespread in character (Ivanov “Article”). As a result, these issues pose a greater threat to national and international stability and safety. More lives are now affected by threats to international security; these threats did not seem too ominous before the entry of globalization. Consequently, some extremists justify the use of mass weapons of destruction in order to guarantee their security. And as globalization continues to expand and to grow bigger as a phenomenon, threats to international security are...
7 Pages(1750 words)Assignment

Progress on G20 Summit on Accounting Standards

The said declaration contains the results of the discussions of the G20 leaders related to the current financial crisis. It contains what the G20 believes are the causes of the financial crisis and the actions to be taken.

The said declaration contained the short-term (classified as immediate actions) and medium-term actions that the G20 members think should be done to achieve true financial reforms. As part of the medium-term actions, the declaration states that “the key global accounting standard bodies should work intensively toward the objective of creating a single set of high-quality global standard”. It also stated that “regulators, supervisors, and accounting standard setters, as appropriate, s...
9 Pages(2250 words)Lab Report

Economic Analysis on BMW Cars in the US Car Industry

Mini and the 1-series rapidly grew at a much higher rate through 2008. Since the early days of the new millennium, BMW has been one of the first automakers to utilize flexible factories in which more than one vehicle model could be produced at the same time. This enabled the company to meet shifts in market demand more effectively than BMW’s competitors could. BMW challenges to retain its market position in the international market for luxury cars. Many automakers, such as Hyundai with its Genesis sedan or Nissan's Infiniti brand are increasingly successful in realizing higher margins earned on luxury vehicles. BMW is rated behind luxury brands such as Lexus, Porsche, Mercedes, and Infiniti for these reasons

1. Th...
7 Pages(1750 words)Case Study

Accounting for Managers

ii) In the audit report, the external auditors express their opinion about the fairness of the financial statements of the company and whether they have been presented as per the generally accepted accounting principles (GAAP) in the USA. The opinion can be unqualified opinion when no financial misstatements are discovered, Qualified opinion when there are one or two instances of non-compliance, Adverse Opinion when financial statements are found to be wrongly stated and Disclaimer when there are hindrances in performing audit (Credit Research Foundation, n.d.; The University of Michigan-Flint, 2003).

iii) The audit of external reports helps in evaluating the risk management policy and control procedures of an organizat...
6 Pages(1500 words)Assignment

Alternative Methods of Accounting

...The accounting profession was formally founded in 1494 when the Father of Accounting, Luca Pacioli, introduced the double-entry system in the textbook Summa de Arithmetica, Geometria, Proportione et Proportionalite (Weygandt & Kieso & Kimmel, 2002). Accounting has always been a self regulated profession. After the 2nd half of the 20th century changes in accounting occurred due to the influence of private organizations such as the FASB. In the United States accountants followed the generally accepted accounting principles (GAAP) to guide their every day work. Accounting is a discipline that is very strict in its ways and does not welcome change well. In the aftermath of the Enron and WorldCom scandal the government had to force change...
8 Pages(2000 words)Article

Project Management of Beijing Capital International Airport T3 Terminal

Some stakeholders can be both driving (positive) and restraining (negative) forces, it depends on how the project will meet their interests. These forces are marked by a dotted line. If changes happen, and the project won’t meet the interests of some of these stakeholders, a vector of the corresponding force will be changed onto the opposite and the force will move onto the opposite part of the diagram.

Each half of the diagram (left and right) is divided into three parts – Low, Medium and High. It defines the size of a force vector and indicates the importance (power) of a given force. Short forces have a low level of power.

Civil Aviation Administration of China (CAAC) – undoubtedly advanc...
7 Pages(1750 words)Assignment

Management Accounting: Costing and Budgeting

Standard costing and related variances is a valuable management tool. If a variance arises, management becomes aware that manufacturing costs have differed from the standard (planned, expected) costs

(b)Under Always Better Control (ABC) method of production; the units which are lesser in numbers but highest in values are controlled first. Next, the units which are both moderate in unit numbers, but value-wise are controlled next. Finally, a comparatively lesser degree of control over items in inventory which are higher in unit quantity, but lesser value is taken up. The logic is that, the items which must contribute to inventory costs are given highest priority, since this impacts their bottom lines.

(c)The f...
12 Pages(3000 words)Assignment

The Relationship Between Financial Perfprmance and Corporate Social Resposibility on Saudi Electricity Company

The pragmatic parallel mixed methods design was adopted for the study using the questionnaire, structured interview guide and content analysis were the primary instruments utilized in the collection of data. A total of 500 respondents participated in the study. These respondents represented the five sectors considered in the study, namely: the community residents, SEC employees, SEC managers, personnel from other establishments (i.e., the marketplace) and the government.  A combination of sampling techniques was used in this study: stratified random sampling, for the community respondents and SEC employees; simple random sampling, for the respondents of other companies; and purposive sampling for SEC managers and a representa...
88 Pages(22000 words)Case Study

Challenges Faced by International Media Corporations Operating in China

Considering Geert Hofstede’s cultural dimensions, China exhibits a low ranking in individualism meaning that they observe a collectivist culture dictated by the communist rule (Hofsted, 1996). In this type of society, loyalty is considered to be of great importance, a factor that has made it difficult for foreign companies to invest freely in the country. This essay is a critical evaluation of challenges that international media corporations operating in the country face.

The attempts by foreign investments to penetrate China’s market have proven futile in the past especially due to the conservative nature of the inhabitants. China is a strict country when it comes to culture and cultural interaction. For ex...
7 Pages(1750 words)Coursework

Generally Accepted Accounting Principles

... the GAAP system to the international IFRS basing on the advantages. Work Cited Bragg, Steven M. Wiley Gaap 2012: Interpretation and Application of Generally AcceptedAccounting Principles. Hoboken, NJ: John Wiley & Sons, 2011. Internet resource. Chalmers, Keryn, and Jayne M. Godfrey. Globalisation of Accounting Standards. Cheltenham [u.a.: Elgar, 2007. Print. Holt, Graham, David Tweedie, Philippe Richard, Abbas A. Mirza, and Magnus Orrell. International Financial Reporting Standards (ifrs) Workbook and Guide: Practical Insights, Case Studies, Multiple-Choice Questions, Illustrations. Hoboken, N.J: Wiley, 2013. Internet resource....
2 Pages(500 words)Assignment
sponsored ads
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.

Let us find you another Term Paper on topic The US Generally Accepted Accounting Principles vs International Financial Reporting Standards for FREE!

Contact Us