Question

Why were efforts made to converge the GAAP and IFRS standards?

Answer 1

In addition to the IFRS, GAAP's standards impact the set of corporate business management, investors, accounting professionals and accounting standards. Beyond this, the concentration of accounting standards is shifting the purpose of CPAs and CFOs to international accounting, which seeks to influence the outcome of international accounting standards and the integration of GAP and IFRS standards.

Annual financial information standards change according to the needs of the country, which in turn create discrepancies. When it comes to investing in supplying companies looking for capital, those who are planning to do business only follow the country's accounting standards and financial reporting.

One of the important differences between GAAP and IFRS is Purpose / Vision: Based on GAAP rules, IFRS appears to be principle-based. GAAP contains a set of instructions that try to establish the rules and criteria for a contingency factor, while IFRS begins with good goals, objectives, and objectives. And then receives guidance on how a particular objective is aligned with a given element.

The convergence of accounting and reporting standards internationally and the subsequent changes have a number of factors. This appears to be a solution to the current complexities, conflicts and hardships caused by inconsistency by the International Accounting Standards Board (IASB) and to eliminate the lack of accountability.

United States generally accepted accounting principles "US GAAP" and internationally
Reporting standards are "IFRS", widely used around the world. The standards of the two articles have similar rules. Problems arise when teams in each economy play together. Both standards are more important, considering the difficulty of following different rules, but
Imagine developing parallel accounting standards globally, playing parallel games. This includes both US GAAP and IFRS.