Featured:
Allergies
Grilling Guide
eHow Now Blog

International Accounting Vs. GAAP Accounting

Accounting is governed by one of two governing bodies: the International Accounting Standards Board (IASB) or the Financial Accounting Standards Board (FASB). FASB covers all accounting in the U.S. while the IASB governs accounting in 100+ countries worldwide, according to their website.

Other People Are Reading

  1. History

    • FASB has been responsible for issuing the Generally Accepted Accounting Principles (GAAP) since 1973; both domestic and international companies have used historically GAAP when preparing financial statements in the U.S.

    Facts

    • As global financial transactions have increased over the past several decades, FASB has been working with the IASB since 2002 to converge the International Financial Reporting Standards and GAAP into one principles-based accounting guideline system.

    Effects

    • Global transactions have led U.S. companies to prepare financial information using each set of accounting standards. International divisions must use IFRS, while domestic headquarters or divisions must use GAAP.

    Considerations

    • Converging the two accounting guidelines would help lower internal costs for companies and create greater international transparency for outside stakeholders. However, special accounting regulations for different sectors of the U.S. economy create difficulties for the convergence process.

    Expert Insight

    • The U.S. accounting firm PriceWaterhouseCoopers has prepared a comprehensive website for companies to further understand the specific differences between IFRS and GAAP. This information can be accessed through the PWC link below.

Related Searches:

References

Comments

You May Also Like

  • Sap Vs. Gaap Accounting

    Generally Accepted Accounting Principles (GAAP) is the authoritative accounting principles for the private sector. Statutory Accounting Principles (SAP) are ...

  • GAAP Accounting Vs. Tax Accounting

    Companies must follow all accounting rules when recording their financial transactions from business operations. In addition to the normal accounting standards ...

  • Rules-Based vs. Principle-Based Accounting

    Both rules-based and principle-based accounting systems are meant to provide the best possible financial statements to investors. Under principle-based accounting ...

  • Comparing GAAP Accounting vs. Tax Accounting

    There are two choices when selecting an accounting method for your business: GAAP, which stands for Generally Accepted Accounting Principles, and Tax...

  • About the International Accounting Standards Board

    The International Accounting Standards Board is responsible for setting up, promoting and developing the standards set up by the International Financial Reporting...

  • Who Started the GAAP?

    Accounting practices and standards are specific and highly regulated to allow uniform compliance and unilateral codes of proper etiquette and form within...

  • International Accounting Standards

    International accounting standards are the previous set of standards that regulated how specific transactions should be noted in financial statements. International ...

  • About the Rules of the Financial Accounting Standards Board

    The Financial Accounting Standards Board is responsible for creating and implementing a specific process for setting nationally accepted accounting principles in the...

  • International Standards for the Equity Method

    In accounting, the equity method refers to the process a business uses to report equity investments within another company. Typically, equity investments...

  • Who Founded the GAAP?

    If you're an accountant or studying accounting as a profession, you have probably heard of the GAAP (Generally Accepted Accounting Principles). This...

  • How to Consolidate Net Income

    Consolidating net income occurs with subsidiary and parent companies. A parent company is a company that owns other companies, called subsidiaries. Consolidating...

  • What Does GAAP Stand for in Accounting?

    GAAP is the standard implemented by accountants and auditors. The acronym stands for generally accepted accounting principles. It is a compilation of...

  • What Are the Benefits of International Accounting Standards?

    The International Accounting Standards Board sets accounting standards across the globe. Unlike country-specific standards such as the Unites States' GAAP (generally ...

  • What Is GAAP Accounting?

    GAAP--"generally accepted accounting principles"--are a common set of accounting rules, standards and procedures. They are used to prepare, present and report ...

  • The Advantages of International Financial Reporting Standards

    The Advantages of International Financial Reporting Standards. If the business world were on the same set of accounting standards, international companies wouldn't...

  • Rules- Vs. Principles-Based Accounting

    Two schools of thought prevail when it comes to accounting standards: Some prefer a rules-based financial reporting system and others want to...

  • International Financial Reporting Standard

    Historically, different countries have developed financial reporting systems influenced by local economies, political systems and cultures. Although many countries ...

  • Financial Accounting Ethics

    Maintaining true and reliable statements is the main objective of fair financial reporting. However, many aspects of corporate governance suggest that significant...

Related Ads

thumbnail
Featured