IFRS DIFFER FROM US GAAP

IFRS differ from US GAAP





US Foods Inc.

IFRS differ from US GAAP

To: Ms. Bostick

From:

Subject: IFRS differ from US GAAP

Using IFRS as compare to GAAP in US food Inc will eliminitae the political influence in the company. Although IFRS will reduce the quality of financial statement but still impede comparibility.This also become positive sign for a company as with an increase comparibility the copetition will increase, inviting more investor to invest in our company.

For US Foods Inc, both U.S. GAAP and IFRS require that financial statements are prepared on the accrual basis of accounting (with the exception of the statement of cash flows), except in rare circumstances. Both standards have similar concepts with regard to the materiality and consistency that institutions must take into account in preparing their financial statements.

In particular, it's very clear that U.S. standard-setters, regulators, and other participants in the financial reporting supply chain don't consider the specific standards that comprise IFRS to be superior to the standards that comprise U.S. GAAP.

IFRS will increase US food comparability worldwide. IFRS are hybrid standards which combine accrual accounting and value analysis. So long as a performance reporting standard has not been finalized, we shall continue to accumulate disparate elements. And the more hybrid the system, the less likely it is to propose relevant information.

US Food Inc has suffered because the reporting format is inadequate. To be coherent we need to cease perceiving net income as the be all and end all of performance.

This change would badly affect the invertors of US food Inc because the price of doing business will also increase as change in statements .Although, investor are not completely aware of these facts and they need some training to learn all these.

There were a lot of IFRS technical accounting conferences and webcasts that provided training. This orientation will help them understanding the need and the major accounting difference between the two.

Investor can easily approach European companies as this IFRS is already implemented there. We view a parallel in the education process. We expect that they will continue to enhance the publications as U.S. companies and auditors obtain more experience in interpreting and applying IFRS.

The AICPA is also creating a web-based IFRS program that will provide a certificate upon completion and universities have started to incorporate IFRS and convergence projects as part of the accounting curriculum.

We also networked with other companies that were on IFRS as well as those that were actively working on IFRS projects in order to share knowledge about interpretation and application issues.

As the SEC continues to evaluate various aspects of the Work Plan, we encourage the SEC to strongly consider reducing the number of years of comparative information from three years to two years. Generally speaking, analysts are less concerned with the historical information going back two years.

They review prior year data and place more focus on the company's future outlook including cash flow and the research and development ...