Ifrsvsgaap

IFRS vs GAAP
Jean A Jean-Rene
ACC/291
February 16, 2015
James Ferguson

IFRS vs GAAP
According to “GAAP vs IFRS” (n. d.) “GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the US, while IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries around the world. GAAP is considered a more “rules based” system of accounting, while IFRS is more “principles based.” The U.S. Securities and Exchange Commission is looking to switch to IFRS by 2015.”

IFRS/GAAP
      IFRS 8-1: What are some steps taken by both FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed? Pologeorgis  (April 16, 2013), “Both the FASB and the IFRS continue to collaborate on the development of new and convergence of existing standards, including the area of business combinations, which is an important feature and component of the capital markets, as well as the areas of revenue recognition and the financial performance of business enterprises. Both FASB and IASB, having acknowledged the complexity and pervasiveness of the revenue recognition area in financial reposting, are collaborating on developing a new single-revenue recognition standard for both the U.S. GAAP and the IFRS, which will streamline accounting for revenue across industries and correct any current existing inconsistencies in standards and practices. The new standard will also require businesses to disclose more information about revenue and proposes guidance to clarify accounting for contract costs” (para. 19, 23).
      IFRS 9-1: What is component depreciation, and when must it be used?
As we talked about last week their where three depreciation methods that are commonly used,

Straight-line, accelerated, and units- of-activity.  These three methods are at any business choice

to be used along with another method called component depreciation.  Component...