Evans_ACC291_Comparing IFRS to GAAP 2016

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Running head: COMPARING IFRS TO GAAP 1 Comparing IFRS to GAAP Tonja Evans ACC/291 July 25, 2016 Mr. Robert Hayes
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COMPARING IFRS TO GAAP 2 Comparing IFRS to GAAP Over the past three weeks Learning Team B which includes myself have discuss many factor, similarities and differences of the two accounting systems called the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles. The (GAAP) accounting system is primary used in only the United States, however, for several years the US has been trying to adapt the (IFRS) system which is being used in the European Union and many other countries for marketing purposes globally. Therefore, I will give a brief explanation to several questions of the comparison of these two systems to give you a better understanding on why the United State are still using the (GAAP). IFRS 8-1: 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? Under US GAAP (FAS 157), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. IFRS 13 was originally issued in May 2011 and applies to annual periods beginning on or after 1 January 2013. IFRS 13 Fair Value Measurement applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. In May 2011 The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework; the FASB has also issue conforming amendments to their own fair value guidance in ASC 820. IFRS 13 defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13
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COMPARING IFRS TO GAAP 3 does not change the requirements regarding which items should be measured or disclosed at fair value.
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  • Spring '15
  • Balance Sheet, Generally Accepted Accounting Principles, International Financial Reporting Standards

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