An important fact to remember when studying GAAP and IFRS is:
A) if the U.S. adopts IFRS, the accounting information being taught currently will all be outdated.
B) there is no difference in way information is arranged on the balance sheet and income statement if IFRS is adopted.
C) newly issued U.S. accounting standards have conformed U.S. practices to IFRS.
D) there is no terminology difference between GAAP and IFRS.

Question

Quizplus · Accepted Answer

Newly issued U.S. accounting standards have been conforming U.S. practices to IFRS. This means that there is a convergence between GAAP and IFRS, and some principles are already being adopted by both organizations. However, this does not mean that IFRS will replace GAAP entirely or that current accounting information will all be outdated. Though the accounting principles and standards may differ between the two, certain key principles remain constant, and overall the frameworks are relatively similar.

An Important Fact to Remember When Studying GAAP and IFRS