Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 4

Some people believe that U.S. companies should be given the choice of using either U.S. GAAP or IFRS instead of mandating IFRS. Do you think this would be a good idea? Why or why not?

Step 1 of 2

Accounting rules:

Accounting rules are defined as a statement which provides guidelines to record the accounting transaction.

IFRS:

IFRS stands for international financial reporting standards. It is developed by the IASB (International accounting system board) for the preparation of the balance sheet and other profitability statements.

GAAP:

GAAP stands for generally accepted accounting principles. It is the set of accounting principles and standards.

It was issued in 1973 for US public and private companies by the financial accounting standard board for issuing a public statement.

It is the set of accounting guidelines lines and rules used by the companies for financial reporting.