Respond to the following in a minimum of 175 words:
What impact, if any, do international accounting standards (i.e., the International Financial Reporting Standards developed by the International Accounting Standards Board) have on U.S.-owned businesses? On international businesses? Is the impact greater on U.S. businesses in any particular industry, and if so, why?
Respond to the following in a minimum of 100 words:
International Financial Reporting Standards give to financial productivity by helping recognize chances and risks across the world, therefore refining capital distribution. There use of a single reliable account verbal drops of cost of capital and lower the international reporting costs.
There are two main a used in accounting, the GAAP is rule-based and IFRS is principle-based. GAAP will not allow for inventory reversals, but IFRS will permit them under certain circumstances. A key difference is the GAAP needs financial statements to contain a statement of comprehensive income.
The main purposes of IFRS? to develop, in the public interest, a single set of high quality, logical and enforceable global accounting standards that need high quality, transparent and similar information in financial statements and other financial reporting to help contributors in the world’s capital markets and other users make.
Financial reporting standards offer values for preparing financial reports and determine the types and amounts of information that must be given to users of financial statements, with investors and creditors, so that they may make knowledgeable conclusions.
I was looking at around trying to see if I could find any articles related to whether there is an impact on U.S. owned business by the international accounting standards developed by the International Accounting Standards Board as it presents guidelines for reporting the financial activities of a business. Similar to generally accepted accounting principles maintained by the Financial Accounting Standards Board in the United States, IFRS seeks to provide an internationally recognized set of standards to introduce greater consistency to financial reporting around the world. For U.S. businesses accustomed to GAAP standards, adapting to comply with IFRS can require a number of significant accounting changes apparently. There are administrative, accounting, a well as financial statements and periodic reporting changes. there are also changes related to the accounting on assets and inventory are handled as well as the revenue recognition principle. “The differences in revenue recognition can impact net income and a wide range of financial ratios, leading to large changes in a company’s performance measures when switching to IFRS. This can require a company to alter its business model, pricing structures or payment terms to preserve existing ratio valuations.”