At that time, conceptually and practically, the differences between the two frameworks were numerous and significant. This 500-page report included comparative analyses of each of the IASC's "core standards" to their GAAP counterparts. Comparison Project, a comprehensive comparative study of IASC (International Accounting Standards Committee) standards and GAAP.
In September 1999, the FASB published its second edition of an IASC-U.S.
Securities and Exchange Commission) proposal, one wonders what the potential impacts of the differences between these two frameworks on the financial statements will be? And how financial executives can anticipate the adoption of IFRS in order to minimize the last-minute adjustments? is clearly moving toward IFRS, as re-emphasized by the recent SEC ( U.S. And, both standard setters, IASB ( International Accounting Standards Board) and FASB ( Financial Accounting Standards Board), initiated a convergence project even before IFRS was actually adopted by many countries. GAAP ( Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). With globalization, the need to harmonize these standards was not only obvious but necessary.īy the end of the ’90s, the two predominant standards were the U.S. They were rules-based, principle-based, business-oriented, tax-oriented … in one word, they were all different. Are the two standards still very different?įor many years, countries developed their own accounting standards. Unlike what happened with other countries, IASB and FASB have been working on convergence for many years. Remi Forgeas, CPA Insider | June 16, 2008