Transition Between Gaap and Ifrs

The Transition from GAAP to IFRS
Emmanual E. Benton
Hampton University



















Then join States has based its report principles on the Generally Accepted Accounting Principles (GAAP) for the last turn of years yet seem it necessary to transition to the internationalistic Financial Reporting Standards (IFRS). IFRS is more universally known to the loosening of the initiation and different countries. We are in the process of transitioning the world to a global economy. This means that their must be a universal language that must be known to either culture, language, and ethnicity. This universal language allow for be felt in the accounting principles under the standards of IFRS. This transition has been realize in other countries, and we will dive into how those countries made that transition as we maintain throughout the paper. This transition can only be made in two different ways. Securities Exchange Commission (SEC) and the federal official Accounting Standards Board (FASB) must come to a conclusion and decide which regularity will be the best method for the nation to follow. The two methods are to follow a heavy(a) Bang draw near or follow a Staggered approach.
What defines a Big Bang approach?



The big bang approach would mean that companies all across the United States would, on a given date, and all at once, make the transition amid GAAP and IFRS. The term big bang approach implies that everyone would make such a change simultaneously. This has many pros and cons that we will converse in further detail momentarily.
The Staggered Approach means that the United States would transition from GAAP to IFRS in some form of a stagger. A stagger could mean anything as long as it is clearly defined. A staggered approach gives and endless amount of possibilities, however, it overly has its pros and cons.
To simplify the meaning of the big bang and staggered approach we will give a small example. Let us channelise a simple process like cleaning a house, and engineer the...If you want to get a full essay, social club it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper