Statements Contrary to the Gaap Standards

What is globalization? Globalization is the act of expanding to other or even all areas around the world from the country of origin. Much like its very Telephone Number List broad definition, Globalization can be the basis for discussion for a wide-range of topics. To narrow down a bit, I will focus mainly on the Generally Accepted Accounting Principles (GAAP) in comparison to the International Financial Reporting Standards (IFRS). I will be calling attention to a few of the differences Telephone Number List between IFRS and GAAP as well as touching upon some of the similarities between the two accounting standards. In addition, I will discuss several of the advantages and disadvantages Telephone Number List of the United States converting from using GAAP to IFRS.

Throughout the world there are two main systems of accounting, the Generally Accounting Principles, also know as GAAP, and the International Telephone Number List Financial Reporting Standards, otherwise known as IFRS. According to The Telephone Number List Business Dictionary, "GAAP provide objective standards for judging and comparing financial data and its presentation, and limit the Telephone Number List directors' freedom in showing an unrealistic picture through Telephone Number List creative accounting" (4). With this system come benefits as well as negative aspects.

One benefit provided by GAAP is that the system is rule based, which means there is less room for exceptions (2). With this aspect, it becomes Telephone Number List easier to produce correct statements while avoiding mistakes and errors. An additional advantage is that GAAP separates their different entities into different parts. As far as disadvantages go, the main and Telephone Number List arguable the most important is that of the nonexistent universal way in which to do the accounting standard. As a result, it becomes more difficult to compare statements and Telephone Number List records with those of other countries.