Question

Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do you find most interesting? If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?

Answer 1

Major Similarities and Differences Between U.S.GAAP and IFRS:

1) At the time of issuing the documents we need to include in the financial statements in U.S.GAAP is inclusive income statement, balance sheet , cash flow Statement , variations in equity and notes.

But in the IFRS they show as income statement, balance sheet, cash flow statement, variations in equity and notes

2) In U.S.GAAP balance sheet neither shows separate nor separate current assets and non current assests.

But in IFRS we need to submit separate current assets and non current assets.

3) FASB and IASB working together from 2002 to achieve the merging of IFRS and U.S.GAAP to set a standard format of accounting standards needs to use same format of accounting formats.