IFRS

International Financial Reporting Standards - IFRS

Abstract

This research explores the accounting standards known as 'IFRS', differentiating with other accounting standards like GAAP. The paper also explores how these standards will affect United States Securities and Exchange Commission policies, regulations and control mechanisms. The research enlightened the significant impact of the IFRS in the accounting standards. The research also discusses the integration of FASB and IASB with FIRS. Furthermore, there is a roadmap from SEC to have convergence with IFRS that is the major impact of IFRS implementation. The report will facilitate accounting professionals and students.

Table of Contents

Introduction3

Discussion4

The impact on financial accounting reporting by implementing IFRS6

IFRS vs. GAAP7

FASB and IASB Integration8

IFRS in the United States9

Challenges in IFRS10

Cost and Benefit11

SEC Proposes Roadmap for Using IFRS11

Considerations12

The Issue of Transparency in IFRS and GAAP13

Conclusion14

International Financial Reporting Standards - IFRS

Introduction

International Financial Reporting Standards is the combination of accounting standards. It states that how different types of the transaction and other accounting events should be reported in the financial statements. It is declared by the International Accounting Standards Board. International Financial Reporting Standards (IFRS) aspires to bring the entire nations in the world under a similar set of global accounting standards that presents consistency, transparency, and compatibility in financial reporting system. According to a fact financial regulators in several countries have generated high demand for IFRS compliant financial statement (David, Christopher, 2008).

The International Financial Reporting Standard (IFRS) for Small and Medium size corporations published as an introductory plan by the IASB in 2007. This system introduced and designed for companies that have no public accountability. If the company's shares or debts listed and floated in the public exchange or financial institution company only then there would be Public Accountability. The IFRS for SME (IFSME) have capabilities to apply in the large range of private organizations (David, Christopher, 2008). In 113 countries, more than 12,000 companies have implemented IFRS in some degree, and many other countries are enduring to implement the standards each year with the expectation of increased comparability of financial statement.

Discussion

FASB and IASB have committed to improving and converging IFRSs and US GAAP. It is consistent with the sturdy support for the aim of a singular set of high quality global standards newly uttered by all the Leader of the Group of twenty nations. Their work and efforts will achieve similar set of high quality standard with the independent standard setting process. FASB and IASB are working with US GAAP, and IFRS to achieve their major aim and goal for enhancing global comparability by eradicating dissimilarities. They want to enhance the common standards that will help to improve financial reporting in USA and other parts of the world. These efforts will continue international comparability. The primary objective could be achieved if they continue working together. In the United States, publicly-held companies have been using generally accepted accounting standards (GAAP) as a set of accounting principles, standards and procedures to compile their financial statements.

The globalization has become common in the world, and trade companies moved into the ...