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Financial Reporting Standards - Essay Example
Author : ashlyjacobs
Pages 8 (2008 words)
IFRS is the International Financial Reporting Standards. It provides the whole body of accounting standards and disclosure requirements. It has been in existence since mid 1970s. GAAP is the Generally Accepted accounting Principles, which encompasses accounting and reporting standards, applied in the United States but not universally…
There has been progress towards the development of single, globally accepted accounting standards. The goal is however yet to be realized. The United States is currently working towards the convergence of Generally Accepted Accounting Principles with International Financial Reporting Standards (IFRS).
Crucial convergence projects from the International Accounting Standards Board (IASB) and the U.S Financial Accounting Standards Board (FASB) have continued to produce good results in an effort to converge the two Accounting and Financial reporting standards. This process of dissecting and eliminating the possible difference between that may the two standards is however costly and consumes a lot of time. The alignment of the underlying principles and the overall methodologies is an effective approach. A significant difference continues to arise though the underlying principles and the overall methodology regarding these standards are harmonized. As the FASB and the IASB continues on their convergence work, the U.S Securities and Exchange Commission (SEC) continues to make significant progress aimed at increasing the acceptance of the IFRSs and abolishing the US GAAPs .Also, PWC has helped companies' to successfully understand the IFRS. ...