[Solution]Development and Use of GAAP and IFRS

I need a 150 word reply to each of the following two forum posts made by my classmates (300-words total) (the original forum question[1]  is at…

I need a 150 word reply to each of the following two forum posts made by my classmates (300-words total) (the original forum question[1]  is at the bottom):
Reply #1 [1]
For this first discussion point, I decided to go with question number one. Primarily because I have no idea what GAAP and IFRS even are! I figure this will give me a good opportunity to do some research and learn about them.
GAAP is short for Generally Accepted Accounting Principles, which within the United States, delivers boundaries and standards for accounting practices. These accounting boundaries and standards would include financial statements such as the balance sheet and income statement.
With GAAP, outside parties such as investors or board members can learn quite a bit about a company just from financial statements like the balance sheet or income statement. This allows for greater transparency into the health of any business.
IFRS is short for International Financial Reporting Standards. From reading through some articles, the main intent of IFRS is to create a set of standards that are easily understood, enforceable, and of high quality. These standards help any company to prepare its financial statements, share information, and report economic reports. Very similar to GAAP, IFRS also provides outside parties reliable and transparent information about a business’s financial strength, market position, and their performance.
The major difference between these two is that GAAP is primarily used in the United States and IFRS is most commonly used internationally. Even though GAAP and IFRS assist in guiding businesses on how to report their financial information so that others can make knowledgeable decisions, results can very on which process is used.
The United States, as well as other super-power countries, around the world, are constantly doing dealings with various companies. I would say that most of these dealings would be large-scale companies, such as Samsung Electronics and Apple, implementation of international accounting would be feasible. On the other side, the United States has a lot of small very wealthy companies. That being said, I do not think the implementation of accounting standards worldwide would be feasible.
Resources
https://scalefactor.com/ask-the-experts/what-is-gaap/
https://www.businessinsider.com/ifrs
 
 
[1] Original Forum Question:
The Week 1 Discussion consists of two separate questions. You will answer one of the three questions.   
(1st question) Compare and contrast the development and use of GAAP and IFRS. Do you think the implementation of international accounting standards is feasible? Please explain.
 

Assignment status: Solved by our experts

>>>Click here to get this paper written at the best price. 100% Custom, 0% plagiarism.<<<

Leave a Reply

Your email address will not be published. Required fields are marked *