The paper is about the Convergence of GAAP and IFRS and the Impact ...

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The paper is about the Convergence of GAAP and IFRS and the Impact on American Businesses

The following must be in the paper:
Compare and Contrast Differences between GAAP and IFRS (Need to do a minimum of 7)
Current history of the Convergence Project
Progress already made on the convergence
Current status of the convergence project
Future goals of the convergence project
Major Differences between GAAP and IFRS
Progress made in minimizing these differences
Future of IFRS in International Business
Impact of IFRS on U.S. businesses
Differences between Principle-based Accounting and Rule-Based Accounting
Which type of accounting do you prefer and why.

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Convergence of GAAP and IFRS remains a key priority for IASB and FASB, but full convergence is yet to be achieved nearly fifteen years after IASB and FASB started working together to achieve convergence. While some progress has been made in areas such as borrowing cost, consolidation, segment reporting and share-based payment, there are more areas where IASB and FASB are still working on and others where the two bodies have agreed to postpone projects. This paper examines the convergence of GAAP and IFRS and the impact of the convergence on American business. The differences between GAAP and IFRS are explored and a summary of the current history of the convergence project is presented. Additionally, the paper addresses the progress already made on the convergence, the current status of the convergence project, the future goals of the convergence project, major differences between GAAP and IFRS and the progress made in minimizing these differences.
Compare and Contrast Differences between GAAP and IFRS
Generally Accepted Accounting Principles (GAAP) is standard guidelines and structure for typical financial accounting used in the United States while International Financial Reporting Standards (IFRS) is a universal financial reporting method used in over 110 countries. According to PWC (2014), IFRS allows international businesses to understand each other and work together. The key performance elements under IFRS are revenue or expenses, and assets or liabilities while the performance elements under GAAP include those of IFRS as well as gains, losses and comprehensive income. The required documents in financial statements under GAAP and IFRS include balance sheet, income statement, cash flow statement, changes in equity and footnotes. However, GAAP further requires reporting entities to include a statement of comprehensive income in their financial statements (PWC, 2014).
Definition of an asset is one of the areas where GAAP and IFRS differ. GAAP defines an asset as a future economic benefit whereas IFR defines an asset as a resource from which future economic benefit will flow to the company. Both GAAP and IFRS focus on providing relevant information to a wide range of stakeholders. However, while the two accounting frameworks are similar in this regard, they...

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