GAAP and IFRS

I save been asked a few questions almost largely reliable story system principles and IFRS. sensation of the questions is to explain what generally accepted accounting principles is. Another one of the questions is to explain what IFRS is and then consecrate my opinion on whether I think it is a unafraid or bad idea that generally accepted accounting principles should be fling for IFRS and why I feel that way. So, I result hold 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 level 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 return 18 provided by GAAP. According to the Professor of Accounting, Carl S. Warren, and Philip E. Fess (1987), it is the accounting rules. Now, what about the IFRS, what is IFRS?What is IFRS? IFRS is the abbreviation for global 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 every(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, should GAAP be abandoned for IFRS? No. The GAAP is more detailed in repo! rting 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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