Us Accounting Standards vs. International Accounting...

United States Accounting Standards vs International Accounting Standards June 21, 2009 Introduction This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This†¦show more content†¦David Bogoslaw (2008) talks about the convergence in further detail, â€Å"The uproar over fair value accounting practices, which some critics have blamed for the depths of the global financial crisis, threatens to sink a long-sought move by countries around the world toward a single set of international financial reporting standa rds (IFRS). The U.S. Financial Accounting Standards Board (FASB) has been working with Londons International Accounting Standards Board (IASB) since 2002 toward what accounting professionals call convergence. The Securities Exchange Commission (SEC) is expected to announce its road map for conversion sometime this month, which will probably include early adoption in 2010 for about 110 of the largest U.S. companies with business operations throughout the world. The key difference between U.S. Generally Accepted Accounting Principles (GAAP) and IFRS is that U.S. standards are based on explicit rules while the international standards reliance on principles gives companies more room to use their judgment in deciding how to recognize revenue and other key metrics. Adoption of IFRS would also probably trigger a big tax hike for U.S. companies, which would no longer be able to use the last-in-first-out [LIFO] inventory accounting method, which doesnt exist under the international standar ds. The LIFO method assumes that goods purchased most recently are sold first and that theShow MoreRelatedInternational Financial Reporting Standards vs US Generally Accepted Accounting Principles1709 Words   |  7 PagesSecurities and Exchange Commission (SEC) issued a road map for the United States (US) to implement International Financial Reporting Standards (IFRS) that would eventually lead to the dissolution of US Generally Accepted Accounting Principles (US GAAP) (Cox 2008). US GAAP is rules based system of accounting that contains over 25,000 detailed pages of guidance, whereas IFRS is a principles based system of accounting that contains 2,500 pages of guidance. 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Obstacles and Benefits of the harmonization of International Accounting†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreConvergence of Ifrs and Us Gaap15636 Words   |  63 PagesAccountancy Honours Dissertation – Year 2012/2013 Author: David Mcconnell Title: ‘A critical analysis into the convergence of IFRS and US GAAP in the United States’ â€Å"I declare that this dissertation is my own original work and has not been submitted elsewhere, wholly or partly, in the fulfilment of the requirements of this or any other award. Academic citation standards have been maintained and I have made due acknowledgement to the work of others where used in direct quotation and general referenceRead MoreTest Bank Hilton Herauf Modern Ad77200 Words   |  309 Pages- Test Bank - Solution Manual Please visit our website : http://www.needbook1.com/ or contact us at Ebooksmtb@hotmail.com Also you can contact us on Skype: Ebooksmtb Hilton Herauf – Modern Advanced Accounting in Canada – 6th Edition Chapter 1 – A Survey of International Accounting PART 1: MULTIPLE CHOICE 1. Which of the following would not be a reason to obtain a greater understanding of accounting practices in other nations? a. Financial Results are disclosed in different currencies. b. One