International Financial Reporting Standards

1296 Words3 Pages
bulb-icon

Recommended: accounting standards in the business world

The globalization of the world’s capital markets has created an increasing need for comparable, detailed and transparent system of financial reporting making it imperative to establish one set of high quality global accounting standards (Gornick-Tomaszewski, S., & Showerman, S.2010). Currently, there are two sets of accounting standards that are generally accepted for international financial reporting- The U.S. GAAP ( Generally Accepted accounting Principles ) which have been developed by the Financial Accounting Standards Board (FASB) and the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board(ISAB) (Kieso, D.E., Weygandt, J.J., Warfield, T, D, .2013. To bring about uniformity in financial reporting many countries around the world have agreed to accept IFRS as the global accounting standard to be used for preparing the financial statements of public traded companies (Gornick-Tomaszewski, S., & Showerman, S.2010). IFRS can be defined as a comprehensive, high quality set of accounting standards, rules and interpretations used in preparation of financial statements (Gornick-Tomaszewski, S., & Showerman, S.2010).Currently, over 115 countries in the world use IFRS for reporting financial statements of domestic companies. The European Union has mandated that all listed companies in Europe use IFRS to make their information more comparable and less complex to the users (Kieso, D.E., et al, 2013). However, in the U.S. there is complexity in reporting financial data. The reason for this complexity arises from the fact that U.S multinational companies with subsidiaries listed in foreign stock exchanges can prepare their financial statements using U.S. GAAP while foreign public corp...

... middle of paper ...

...ational+financial+reporting+standards+%3A+are+they+right+for+the+united+states.+The+journal+of+global+business+issues+volume+7+issue+2
Gornick-Tomaszewski, S., & Showerman, S. (April 2010).IFRS in the United States: Challenges and opportunities. Review of Business, 30(2), 59-71. Retrieved from http://www.readperiodicals.com/201004/2113499381.html Or, A. (May 2012).Perspectives on eventual IFRS adoption. Retrieved from http://www.albany.edu/honorscollege/files/Or_Honors_Thesis.pdf
Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2013).Intermediate Accounting, 15th edition. John Wiley& Sons, Inc.
Chasan, E. (February 4, 2014).SEC’s new strategic plan backs away from IFRS.CFO Journal. Retrieved from http://blogs.wsj.com/cfo/2014/02/04/secs-new-strategic-plan-backs-away-from-ifrs/
IFRS FAQs (2014). AICPA IFRS Resources. Retrieved from http://www.ifrs.com/ifrs_faqs.html

Show More
Related

  • The United States Should Convert to IFRS

    1069 Words  | 3 Pages

    Gill L. (June, 2012) IFRS: Coming to America Whitehouse T. (December, 2013). Foundation Says IFRS Becomes Global Preference.

    Read More

  • Home Depot vs. Lowes

    3027 Words  | 7 Pages

    Reimers, Jane L. (2003). Financial Accounting A Business Process Application. Upper Saddle River, New Jersey, Prentice Hall.

    Read More

  • IRS and Tax Regulations

    1635 Words  | 4 Pages

    Donal E. Kieso, Wegandt J. Jerry, Warfield D. Terry. (2012). Intermediate Accounting. Hoboken, NJ: Wiley.

    Read More

  • Accounting Fraud, the Investor and the Sarbanes Oxley Act

    1981 Words  | 4 Pages

    Romney, Marshal, and Paul Steinbart. Accounting Information Systmes. 10th ed. Upper Saddle River: Pearson Education, 2006. 193-195.

    Read More

  • Fasb Executive Summary

    599 Words  | 2 Pages

    IASB revenue recognition benchmarks entering the merging venture comprised of two gauges, IAS 18 and IAS 11. IAS 18 worries about revenues including offer of products, administrations, intrigue, eminences and profits. IAS 11 centers around development contracts. Likewise with all IASB gauges, these standard give standards-based direction without particular direction at the exchange level. The guidelines of U.S. GAAP, gave by FASB, then again comprise of an arrangement of more than one hundred revenue related direction of particular principles on an industry and exchange level; in any case, a great part of the general direction is given by Statement of Financial Accounting Concepts No. 5, a non-legitimate wellspring of U.S. GAAP. The IASB and FASB are ready to embrace a joint standard on revenue recognition. This new world standard would adopt an advantage obligation strategy, for example, that of pre-meeting IFRS, while containing more particular direction than IFRS clients are acquainted with seeing, taking a signal from the GAAP guidelines of the United

    Read More

  • The Differences Between the GAAP and the IFRS Accounting Systems

    1089 Words  | 3 Pages

    In the world of international finance there are two major accounting systems; GAAP, which stands for Generally Accepted Accounting Principles, and IFRS, which stands for International Financial Reporting Standards. The United States prefers GAAP while the European market, as well as many other countries, prefers IFRS. By 2015 the Securities Exchange Commission is anticipating a total transfer to IFRS in the United States. Though the differences between GAAP and IFRS are few, they could affect accuracy of financial reporting throughout the world. It is important to understand the differences and similarities between both GAAP and IFRS if one is to globalize ones market (Logue).

    Read More

  • Essay On IFRS Adoption

    518 Words  | 2 Pages

    IFRS 1 requires companies to select IFRS accounting policies and apply those polices retrospectively to all periods presented in the IFRS financial statements. Assets and liabilities required under IFRS have to be recognized. For example, assets and liabilities under finance leases have to be recognized. Assets and liabilities that IFRS does not permit have to be derecognized. For example, deferred costs that do not meet the definition of an asset have to be derecognized. All assets and liabilities have to be reclassified in accordance with IFRS at the transition date. For example, debt issuance costs must be netted against the related financial liability. All assets and liabilities have to be measured in accordance with IFRS. ...

    Read More

  • Budget Analysis

    1842 Words  | 4 Pages

    Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.

    Read More

  • Accounting for the Cost of Software Programs at AdCom Games Develop a Product Costing System

    1524 Words  | 4 Pages

    Financial Accounting Standards Board. (1985). Statement of Financial Accounting Standards No. 86. Norwalk. Retrieved April 7, 2014, from http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175820922177&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=189998&blobheadervalue1=filename%3Dfas86.pdf&blobcol=url

    Read More

  • Financial Analysis of Scholastic and Daktronics

    2133 Words  | 5 Pages

    Gibson, C. H. (2011). Financial reporting & analysis: Using financial accounting information. (12th ed.). Mason, OH: South-Western Cengage Learning.

    Read More

  • Enterprise Resources Planning (ERP) Implementation

    1634 Words  | 4 Pages

    Stair, R.M., Reynolds, G.W., Gelinas, J.U. Jr., Sutton, S.G., Hunton, J.E., Albright, S.C., Winston, W.L. & Zappe, C. (2007) Accounting Information Systems and Financial Modelling, Thomson, South Melbourne, Victoria, Australia.

    Read More

  • Starbucks International Accounting

    1612 Words  | 4 Pages

    Expanding sales to foreign countries can offer a Multinational Company (MNC) higher profit margins, unique products, and technological advantages. One of the major issues that an MNC will face is analyzing foreign financial statements, due to the diversity of accounting guidelines across the world. It’s imperative that companies that decide to go international learn and understand the tax laws and guidelines of other countries, in order to minimize the accounting issues involved in business activities. One of the top coffee producing companies in the world, Starbucks Corp has grown to be a powerful MNC. Their investment in foreign operations and foreign trade requires them to understand international accounting concepts and international financial reporting standards (IFRS). In this report, GAAP concepts used by Starbuck’s will be compared to IFRS.

    Read More

  • A Critical Component Of Any Accounting Theory Course

    1218 Words  | 3 Pages

    One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...

    Read More

  • Differential Analysis In Business

    1360 Words  | 3 Pages

    Heisinger, K., & Hoyle, J. B.(2012). Accounting for Managers. Creative Commons by-nc-sa 3.0. Retrieved from: https://open.umn.edu/opentextbooks/BookDetail.aspx?bookId=137

    Read More

  • International Financial Reporting Standards

    1068 Words  | 3 Pages

    Schroeder, Richard G., Myrtle Clark, and Jack M. Cathey. Financial Accounting Theory and Analysis: Text and Cases. 10th ed. Hoboken, NJ: John Wiley & Sons, 2009. 97. Print.

    Read More

More about International Financial Reporting Standards

Open Document