GAAP versus IFRS Research Paper Example | Topics and Well Written Essays - 1000 words

generally accepted accounting principles versus IFRS - Research Paper ExampleIFRS stands for world-wide Financial Reporting Standards. It includes the accounting standards proposed by International Accounting Standards Board (IASB) and International Accounting Standards (IAS). IFRS is becoming the international standard for the preparation of financial statements especially of public corporations (Haris, 2013). Now the question is why corporations are conversion new standards of IFRS from GAAP? There are some benefits which IFRS is offering to corporations. Some of the benefits are as followAccording to Julie (2013), IFRS enable corporations to present its financial statements on the same primer as its international competitors are adopting, it makes the comparison easier. To facilitate more accurate comparisons to foreign competitors, some U.S. companies may view IFRS as an opportunity to supplement their catamenia reporting with reporting or commentary ground on IFRS. Most of t he U.S. Corporations glance at new markets therefore they have to lay down on with IFRS in order to secure licenses, raise capital, or comply with requirements of local regulators. Overseas clients, merchants, or lessors might too involve IFRS financial statements.IFRS is skilful for the firm who want to raise the capital abroad or it is most beneficial for the corporations who have international investors. Corporations having subsidiaries in countries require having IFRS in order to determination one accounting language company-wide.Haris (2013) stated that the International Financial Reporting Standards (IFRS) is using in more than 110 countries. Majority of the countries among these 110 countries are developed. So IFRs must have some key distinction from the U.S. Generally Accepted Accounting Principles (GAAP) which are as followIFRS is more of a principle based accounting standards where as GAAP has more rule based accounting standards. Principle based accounting standard has the capability to effectively corresponds and detain the sparing