Us Accounting Standards versus International Accounting Standards Essay

United States Accounting Standards compared to International Accounting Standards

06 21, 2009

Introduction

This research project will certainly inform you of the big difference between the Usa accounting criteria and Foreign accounting specifications. The United States uses the Financial Accounting Criteria Board (FASB) to issue financial credit reporting procedures. The International Economical Reporting Specifications (IFRS) happen to be issued by International Accounting Standards Board (IASB). You will find proposals for the United States to look at the Foreign standards. Monetary reporting techniques are contested about the United States using the Generally Accepted Accounting Procedures (GAAP) or following a global procedures. This job will also look at, compare, and contrast this kind of debate.

Discussion of Topic

Within an article by Heidi Tribunella (2009),

" U. S. GAAP is considered rules based. Rules-based accounting specifications, on the other hand, give strict rules that must be honored in order to properly account for particular transactions. For instance , lease accounting in the United States offers four standards for determining if a rent is a capital lease. When a lease is made up of any of the pursuing, then it is known as a capital lease and must be accounted for as such: one particular ) a bargain purchase alternative; 2) control transfers at the conclusion of the lease contract; 3) bare minimum lease obligations with a present value of at least 90% from the FMV of the asset; or perhaps 4) a lease duration of atleast 74% of the financial life from the asset. This can be an example of very specific rules for accounting for leases” (Tribunella, 2009).

Tribunella (2009) goes on to describe International accounting standards, " International Monetary Reporting Requirements (IFRS) happen to be issued by International Accounting Standards Table (IASB), that has been created in 200l. Previously, the International Accounting Standards Committee (IASC), founded in 1973, granted International Accounting Standards (IAS). When the IASB was created, this adopted the IAS and continued the effort of the IASC” (Tribunella, 2009). Gary T. Meek and Wayne W. Thomas (2004) explain the influence of the IASB around the global confirming standards like the U. H. GAAP. " In 2000, the International Organization of Securities Commissioners (IOSCO), which the SECURITIES AND EXCHANGE COMMISSION'S is a member, recommended to member countries that IASC standards be taken in cross-border offerings and listings. The enforcement of International Economic Reporting Specifications (IFRS) simply by exchange government bodies will be essential to the eventual acceptance in the IFRS throughout the world…In October2002, the IASB and the Financial Standards Accounting Board (FASB) issued a memorandum of understanding, which formally explained their determination to the concurrence of IFRS and U. S. GAAP” (Meek and Wayne, 2004). Jose Marrero and Thomas Brinker (2007) explain the efforts from the IASB and the FASB to merge all their practices. " Over the last two decades, research signifies that designing a framework of worldwide accounting standards favors nice of tradition. Cultural variations will impact a nation's final general opinion regarding accounting standards. However , after many years of discussion, a simple solution to the dilemma of joining culture or international ethnicities and accounting standards offers yet available. Currently, the International Accounting Standards Panel (IASB) as well as the FASB work on a principle-based framework for global financial reporting standards the cooperation of both the IASB and FASB will produce a homogeneous body of accounting specifications allowing monetary and investment advisers to watch global purchase opportunities over a more level playing field…” (Marrero and Brinker, 2007). They also explain why specific business owners might not want to follow along with global procedures, " Even more, business owners are unwilling to abandon all their localized organization practices to appease the accounting criteria imposed in...

References: Bogoslaw, D. (2008, November 14). Global accounting standards? Less than fast. Businessweek

Online, 18. Retrieved 06 19, 2009, from http://search.ebscohost.com

Marrero, J., & Brinker, T. Meters. (2007, January). Are accounting standards consistent? Recognizing

ethnical differences root global accounting standards. Journal of Financial Support Professionals, 16-18. Retrieved Summer 19, 2009 from http://search.ebscohost.com

Meek, G. K., & Thomas, T. B. (2004). A review of markets-based international accounting

research. Diary of Worldwide Accounting Exploration, 3(1), 21-41. Retrieved June 19, 2009, from http://search.ebscohost.com

Pieniazek, A. (2007, April 9). U. S. gaap vs . intercontinental gaap vs . unified gaap.

Accounting, College or university. Retrieved June 19, 2009, from http://www.adampieniazek.com/college/us-gaap-vsinternational-gaap-vs-unified-gaap/

Tribunella, H. (2009, March). Twenty questions on intercontinental financial credit reporting standards.

The CPA Journal, 32-37. Gathered June nineteen, 2009 by http://search.ebscohost.com



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