Comparison of Ifrs and Us Gaap Essay

Presents the key similarities and differences between IFRS and US GAAP, focusing on the differences normally found in practice. It takes into account all standards published up to wonderful 2007. IFRS Pocket Guide 2006 Provides a summary of the IFRS recognition and measurement requirements. Including currencies, as sics, liabilities, equity, income, expenses, personal line of credit combinations and interim financial statements. Understanding financial instruments A guide to IAS 32, IAS 39 and IFRS 7 Comprehensive guidance on all aspects of the requirements for financial instruments accounting. fine explanations illustrated through worked examples and extracts from company reports. Contents Page Preface How to use this outlet Summary of similarities and differences Accounting framework Financial statements Consolidated financial statements concern combinations Revenue recognition Expense recognition Assets Liabilities Equity Derivatives and hedging opposite accounting and insu rance coverage topics Foreign currency translation Earnings per piece Related-party disclosures Segment reporting Discontinued operations Post-balance-sheet events Interim financial reporting 3 4 12 13 20 25 30 34 39 50 58 59 62 62 63 64 65 67 67 68 69 Index Similarities and Differences A comparison of IFRS and US GAAP October 2007 Contents 1 Preface Preface One day we whitethorn not sine qua non to produce this publication because the worlds capital markets entrust be using one accounting framework, and there will be no need for a comparison between two sets of standards. However, there is much(prenominal) to do before this can become reality. The International Accounting Standards control panel and the US Financial Accounting Standards Board have been committed to convergence IFRS and US GAAP since the Norwalk Accord of 2002.Many commentators have called for convergence to alter financial reporting and reduce the compliance burden for listed companies, especially those wi th root market listings in more than one jurisdiction and those who participate in cross-border, capitalmarket transactions. A major step in the movement to one set of global accounting standards is the Securities and Exchange Commissions 2007 proposal to angle of dip the requirement for a US GAAP reconciliation by contrasted private issuers that prepare their primary financial statements under full IFRS. some other significant step is the 2007 SEC Concepts Release on allowing domestic US registrants to use IFRS as an alternative to US GAAP. These potential changes, if they come to fruition, will significantly alter the international landscape of accounting. US capital-market participants have already started to show a much greater interest in IFRS, realising that it may replace US GAAP as the accounting language cardinal future financial reporting and capital-market activity. This will not happen immediately.