All countries around the world have to follow some guidelines to ensure that businesses and books are fair and controlled. The United States uses the Financial Accounting Standards Board (GAAP) GAAP (General Accepted Accounting Principles), while the majority of the world uses IFRS (International Financial Reporting Standards). More recent news about the convergence of the two.
The United States is a country that does not use the IFRS. In the United States, we know very well how we handle our finances. But how well do we know that other countries follow their guidelines? Larger countries such as Canada, India and Japan also have guidelines that they must follow to keep their finances in line and comply with certain rules. For example, Canada is required to apply IFRS, but Japan and India are still not mandatory. Japan prepares its financial statements in accordance with Japanese GAAP. India India may continue to use India GAAP. Both countries are allowed to apply IFRS if they decide. 2015 or 2016 applies IFRS.
Since Canada is such a close country, there are a large number of companies that are US listed companies that have been engaged in Canada. These companies use US GAAP, but they will have to apply IFRS in the coming years.
Countries that do not have the same accounting standards and guidelines to follow may affect people's views on the company's finances. Investors could more effectively compare companies in different countries by submitting their financial statements to the same guidelines as each other. A company may look great investment in US GAAP, but according to IFRS, investment in the company no longer seems to be a big investment.
Americans expressed concern that other countries' finances could not be in other countries. They do not count on the overall quality of financial statements and how they are reported. Of course, there will be classes that enforce new rules and guidelines, such as SEC, but in the first few years there are problems that do not follow every guideline and do not know all the new changes.
This change will not happen at night. But countries expect the United States to determine the time when they expect the introduction of IFRS to be introduced. The United States delayed any time for any change decisions. Countries feel that the United States will soon not make a decision to determine the date of adoption, other countries will follow their steps and delay global changes.
Financial statements will never be ready. Countries have already worked on IFRS exceptions. These rules will never be completely identical to everyone. Each country will be different. People do not like change and they certainly will not rule out the rules they've been following for years. Certain rules in IFRS are in conflict with the US GAAP rules. You have to agree and somewhere to meet in the middle of these parts.
Some people think that we need to start new international rules globally and create new rules so everyone can follow these rules instead of trying to unite GAAP and IFRS. Which can cause few headaches on both sides. But people in other countries are worried because the new rules are not independent of the United States and are more fond of them than other countries.
This change not only deals with reports, but with the sums you spend on preparing and carrying out financial statements. Training and education are needed in order for workers to show the right reporting method and new changes. Everyone in the accounting world is prepared to make this change, though it probably will not happen for another five years.
Everyone knows that change is on us. We just have to wait for significant progress. Once the United States determines the date of adoption of IFRS, we will see more and more news about what will happen and what to expect from the guidelines that will be new rules in the accounting industry.
Source by sbobet