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Convergence from GAAP to IFRS - Essay Example
Author : kerlukegaetano
Finance & Accounting
Pages 4 (1004 words)
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…
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. ...