| Autor: |
Dean, Passard C., Huybrechts, Jessica, Guerero, Melissa |
| Předmět: |
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| Zdroj: |
International Journal of Accounting Information Science & Leadership; Jun2011, Vol. 4 Issue 9, p1-6, 6p |
| Abstrakt: |
Globalization has been the driving force behind a congruent set of reporting standards. Investors require a uniform set of standards to ensure accuracy and confidence in foreign transactions. Moreover, most stock exchange regulatory bodies require conforming to local GAAP; a time-consuming and tedious process with considerable costs. In an effort to maintain consistency and comparability in global financial reporting, the members of the accounting community have sought to develop a congruent set of standards. The formation of the International Accounting Standards Committee or IASC in 1973 marked the beginning of a long journey towards ultimate globalization. There are five areas in which IFRS and US GAAP are at odds. These are LIFO - last in, first out inventory valuation, impairments, curing of debt violations after year end, contingencies, and revenue recognition. The authors of this article decided to focus on the impairment of goodwill, one of the major differences between US GAAP and IFRS. Based on our research, the primary difference is the way goodwill impairment is determined under both IFRS and US GAAP. IFRS uses a one step approach while US GAAP uses a two step approach. Because of the importance of goodwill on the books of many multinational corporations, it will be interesting to see which approach survives if there is a convergence between both sets of standards. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
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