Ifrs to Gaap

In: Business and Management

Submitted By lugoode
Words 1015
Pages 5
Lucien Goode
University of Phoenix

IFRS VS GAAP There are over twenty-eight million businesses in the United States alone and less than one percent of those companies are incorporated. Corporations have been doing international business for hundreds of years and with the tech boom error growing over twelve times more than the early nineties, the way the world does business has changed tremendously. With the United States having so many businesses there is a consistent need to make sure that the accounting process is done the same all over the country, and to help prevent fraudulent or any misleading information. This issue has become even more important with the evolution of traditional business to ecommerce which leads to the constant moving of money between countries. Accounting has the ability to be done in many different forms and fashions, but the world had narrowed it down to only two accounting practices which are IFRS and GAAP.
Accounting practice has been around for hundreds and thousand years and could be trace back to ancient times. In earlier years of accounting and its development started in early Mesopotamia Accounting can also be closely related to writing, counting, and early auditing systems used by ancient Egyptians and Babylonians. The International Financial Reporting Standards (IFRS) has been adopted by more than one hundred and ten countries and was created in the early 2000’s versus its counterpart the Generally Accepted Accounting Principal (GAAP) which was created in 1978. These two types of accounting practices are similar to get to the final result but have big differences. The GAAP is more of a rule based systems and the IFRS is along the principal based system.
The GAAP is maintained and improved by the Financial Accounting Standards Board (FASB). They are a private company…...

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