GAAP and IFRS

I occupy been asked a few questions almost more often than not authorized history principles and IFRS. sensation of the questions is to explain what generally accepted explanation principles is. Another one of the questions is to explain what IFRS is and then shew my opinion on whether I think it is a faithful or bad idea that generally accepted accounting principles should be woebegone for IFRS and why I feel that way. So, I result start up with the first question, what is the generally accepted accounting principles?generally accepted accounting principles, what is it? The GAAP is an abbreviation. It stands for Generally evaluate account statement Principles. A law and business editor, Mark Reutter (2004), stated that the GAAP is defined as the acceptable methods of accounting. The principles, accounting assumptions, and the constraints atomic summate 18 provided by GAAP. According to the Professor of Accounting, Carl S. Warren, and Philip E. Fess (1987), it is th e accounting rules. Now, what about the IFRS, what is IFRS?What is IFRS? IFRS is the abbreviation for worldwide Financial Reporting Standards. The International Accounting Standards Board or IAS issued the IFRS (Investopedia, 2008). The IFRS states how certain types of transactions on fiscal statements should be reported (Investopedia, 2008). The purpose of the IFRS is to off evaluations as well-to-do as possible internationally, which is rather difficult because all(prenominal) hoidenish has their own set of rules (Investopedia, 2008). An example would be the Canadian GAAP is polar than the U.S.GAAP.

Now, sho uld GAAP be abandoned for IFRS? No. The GAAP! is more detailed in reporting of retiree wellness check liabilities and assets, and pension plans than IFRS. In addition to that the IASB will have to make better changes to the application of the IFRS and make the standards more consistent. Companies in different countries have the option to avoid particular IFRS accounting treatments, bringing inconsistency to the IAS (Crain Communications Inc, 2008). ReferencesReutter, M. If you want to get a full essay, order it on our website: OrderCustomPaper.com

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