IFRS versus GAAP
International Financial Reporting Standards (IFRS)
Generally Accepted Accounting Standards (U.S. GAAP)
The U.S. Securities and Exchange Commission (SEC) continues to move forward in its proposed plans to replace U.S. GAAP for U.S. public companies with IFRS, as outlined in SEC Release 33-8982 titled "Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers."
The movement toward convergence between U.S. Generally Accepted Accounting Principles ("GAAP") and International Financial Reporting Standards ("IFRS") has been widely noted over the last past several years. IFRS are the less-detailed financial reporting rules that have been developed by the London-based International Accounting Standards Board (IASB), and which recently have become widely mandated, adopted or emulated in by about 100 countries. Most notably, IFRS have been formally mandated for publicly held companies chartered by European Union (EU) member nations.
Implications for accountants, attorneys, chief financial officers, corporate directors and multinational corporations are significant and immediate, including:
- Training on the differences between IFRS and GAAP
- Financial scrutiny of international joint ventures
- Merger & acquisition (M&A) international accounting reviews
- Sarbanes-Oxley compliance on corporate governance matters
- Analysis of international credit policies for multinationals
- Litigation risk due to inappropriate use of IFRS
International accounting expert Dr. Barry Jay Epstein, CPA, CFF, recognized this trend over ten years ago, when he published the first annual edition of Wiley IFRS.
This IFRS resource center highlights comparisons and differences between U.S. GAAP and IFRS. The material contained herein is excerpted from Wiley IFRS 2010: Interpretation and Application of International Financial Reporting Standards. Learn more about IFRS versus GAAP.
Learn more about international accountant and IFRS expert Dr. Barry J. Epstein,CPA, CFF, at www.ifrsaccountant.com. You can reach him at BEpstein@SSandG.com or 312-464-3520. He is available for speaking, publishing, and consulting engagements.
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