Transition Between Gaap and Ifrs

The Transition from GAAP to IFRS Emmanual E. Benton Hampton University Then join States has based its state principles on the Generally Accepted Accounting Principles (GAAP) for the last do work of years yet seem it necessary to transit to the internationalist Financial Reporting Standards (IFRS). IFRS is more universally known to the relaxation method of the initiation and different countries. We are in the process of transitioning the population to a global economy. This means that their must be a universal language that must be known to all culture, language, and ethnicity. This universal language allow for be felt in the accounting principles under the standards of IFRS. This transition has been realize in opposite countries, and we get out dive into how those countries do that transition as we insist throughout the paper. This transition can only be made in two different ways. Securities Exchange Commission (SEC) and the national official Accounting Standards Board (FASB) must come to a conclusion and decide which regularity will be the go around method for the nation to follow. The two methods are to follow a heavy(a) Bang draw near or follow a Staggered approach. What defines a Big Bang approach?

The big deal approach would mean that companies all across the get together States would, on a given date, and all at once, overhear the transition amid GAAP and IFRS. The term big bang approach implies that everyone would make such a change simultaneously. This has many pros and cons that we will hold forth in further det ail momentarily. The Staggered Approach mea! ns that the United States would transition from GAAP to IFRS in some form of a stagger. A stagger could mean anything as long as it is clearly defined. A staggered approach gives and endless amount of possibilities, however, it excessively has its pros and cons. To simplify the meaning of the big bang and staggered approach we will give a small example. Let us charge a simple process like cleaning a house, and engineer the...If you want to get a full essay, brotherly club it on our website: OrderCustomPaper.com

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