Contents. DIFFERENCES BETWEEN GAAP AND IFRS- 2. CHALLEN

Accountants are responsible for following standards, conventions, and rules in order to ensure ethical accounting in their day-to-day practices. However, the rules in the United States vary from those followed in other countries. The United States uses what is called U.S. GAAP. "GAAP" stands for Generally Accepted Accounting Principles. Most of the rest of the world uses what is called International Financial Reporting Standards known simply as "IFRS." The United States is in the process of either converting or converging U.S. GAAP with IFRS. To complete this Discussion: Using your preferred search engine (such as Google), enter one or more of the following keywords: IFRS U.S. GAAP conversion U.S. GAAP convergence U.S. GAAP v. IFRS Using what you’ve learned in the interactive course content along with the results of your Internet keyword search, focus on and deeply explore the differences between GAAP and IFRS. Consider not only written articles, but also video lecture search results

Contents
DIFFERENCES BETWEEN GAAP AND IFRS-..............................................................................................2
CHALLENGES OF GAAP-.....................................................................................................................2
CHALLENGES OF IFRS-........................................................................................................................3
BENEFITS OF GAAP-...........................................................................................................................3
BENEFITS OF IFRS-.............................................................................................................................3
CONCLUSION-........................................................................................................................................3
REFERENCES-.........................................................................................................................................4

DIFFERENCES BETWEEN GAAP AND IFRS-
CHALLENGES OF GAAP-
GAAP deals with many significant accounting problems concerning stock appraisal,
acknowledgement of income and securities differently from IFRS. This implies that expensive and
complicated reconciliation documents must be prepared by global businesses that jeopardize
accountability and concision.
GAAP offers particular guidelines in certain fields, like derivatives therapy and underwriting, rather
than steering values. This implies that GAAP is not adaptable enough to satisfy global market
modifications. ("GAAP Limitations", 2019)

CHALLENGES OF IFRS-
The most notable challenge of IFRS is the expense of applying international firms that involve
altering inner processes to ensure they are well-matched with new testing norms, practice expenses,
and so on.
The next significant challenge of turning to IFRS turns the IASB into a monopoly in putting norms.
And this will be reinforced if US businesses embrace IFRS.
BENEFITS OF GAAP-
GAAP directives assist companies to keep economic data consistent, decrease the likelihood of
misstatement and improve security. GAAP was set up to protect shareholders' privileges, such as
lenders.
Investors and other stakeholders can match economic data throughout various businesses as GAAP
offers uniform rules that are followed by billing, monitoring and financial analysts.
BENEFITS OF IFRS-
The major benefit is that IFRS promises data on economic statements that are applicable to
domestic norms more precise, prompt and thorough.
Because of the harmonising and optimization of IFRS disclosing norms, stakeholders do not need to
compensate for retrieval and adapting the economic observations in order to enable to comprehend
them, removing economist charges. Consequently, IFRS decreases shareholder costs.
CONCLUSION-
GAAP is a prevalent collection of recognized accounting rules, norms and processes that must be
followed by businesses and their analysts when compiling their accounts.
IFRS is a collection of global accounting rules setting out how to disclose specific kinds of operations
and other occurrences in financial reports. ("GAAP vs IFRS - Difference and Comparison | Diffen",
2019)
Some practitioners believe that technique is the main distinction between both the schemes; GAAP
is based on rules and IFRS is based on reason.

REFERENCES-
GAAP vs IFRS - Difference and Comparison | Diffen. (2019). Retrieved 18 July 2019, from
https://www.diffen.com/difference/GAAP_vs_IFRS
GAAP Limitations. (2019). Retrieved 19 July 2019, from https://bizfluent.com/info-10000609-gaap-
limitations.html