Question

Country difference in accounting standards

Answer 1

Explanation:

each country does not have it's own set of accounting standards. Generally most either use U.S. Generally Accepted Accounting Principals (GAAP) or International Financial Reporting Standards (IFRS).

There has been in project in the works for at least the last decade to combine these two into one set up high quality accounting standards used throughout the world.This is commonly referred to as convergence.

The project has run into several hurtles and in recent years seems to have stalled or slowed down generally speaking IFRS is more a principles based approach and US GAAP is more rules based .IFRS is more flexible and leaves more room for interpretation.

SOME OF THE LARGEST DIFFERENCES b/w THE TWO INCLUDE:

accounting for leases

revenue recognition

mark to market or using a fair

value approach to valuable asset.