Comparing Ifrs to Gaap Essay

1062 Words5 Pages
Comparing IFRS to GAAP Essay Over the course of Accounting we have been taking a look at GAAP versus IFRS. Generally accepted accounting principles, which are defined as the standard framework of guidelines for financial accounting used in any, given jurisdiction. “Generally Accepted Accounting Principles is frequently viewed as the benchmark for high-quality global standards International” (Shelton, Owens-Jackson, & Robinson, 2011, para.). Financial Reporting Standards also known as IFRS, are a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. The IFRS accounting standard used in more than 110 countries (Nguyen, 2014). During the course of this essay, we will take a look at how the two compare and differ when it comes to an in depth look at accounting. Fair Value Measurement The question was asked what are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed? The FASB and IASB have worked to implement fair value measurement for financial instruments. Which is the amount that they can currently could be sold for at that period of time. Both Boards have faced bitter opposition from various groups from financial organization. As a consequence, the Boards have implemented a piecemeal approach. The first step is disclosure of fair value information in the notes. The second step is the fair value option, which permits, but does not require, companies to record some types of financial instruments at fair values in the financial statements. The FASB and the International Accounting Standards Board are contemplating proposals for how to report for financial instruments. The FASB has proposed that loans and receivables be accounted for at their fair value,

More about Comparing Ifrs to Gaap Essay

Open Document