Appendix E - International financial reporting standards. After completing this chapter, students will be able to: Explain the reasons for differences in accounting practices across countries, understand the role of the International Accounting Standards Board (IASB) in the development of International Financial Reporting Standards (IFRS), recognize the major differences between . GAAP and IFRS. | International Financial Reporting Standards Appendix E 1 Learning Objectives Explain the reasons for differences in accounting practices across countries Understand the role of the International Accounting Standards Board (IASB) in the development of International Financial Reporting Standards (IFRS) Recognize the major differences between . GAAP and IFRS App E-2 Learning Objective 1 Explain the reasons for differences in accounting practices across countries App E-3 3 The Globalization of Accounting Standards SEC voted to accept IFRS financial statements from “foreign private issuers” without reconciliation US is moving toward converging . GAAP with IFRS Convergence: process by which . GAAP and IFRS will eventually merge to become a single set of accounting standards. App E-4 On November 15, 2007, the . Securities and Exchange Commission voted unanimously to accept from “foreign private issuers” financial statements that are prepared using International Financial Reporting Standards (IFRS) without reconciliation to . generally accepted accounting principles. There is no doubt that the United States is moving toward converging . GAAP with IFRS. Convergence refers to the process by which . GAAP and IFRS will eventually merge to become a single set of accounting standards. But convergence of standards hasn’t happened yet, and much misunderstanding exists about the status and timing of the convergence process. 4 Learning Objective 2 Understand the role of the International Accounting Standards Board (IASB) in the development of International Financial Reporting Standards (IFRS) App E-5 International Financial Reporting Standards (IFRS) International Accounting Standards Committee Created a standard-setting body, (IASB) International Financial Reporting Standards More countries base their account standards on IFRS ISAC ISAB IFRS App E-6 In response to differences in accounting standards and practices across countries, the International Accounting . | International Financial Reporting Standards Appendix E 1 Learning Objectives Explain the reasons for differences in accounting practices across countries Understand the role of the International Accounting Standards Board (IASB) in the development of International Financial Reporting Standards (IFRS) Recognize the major differences between . GAAP and IFRS App E-2 Learning Objective 1 Explain the reasons for differences in accounting practices across countries App E-3 3 The Globalization of Accounting Standards SEC voted to accept IFRS financial statements from “foreign private issuers” without reconciliation US is moving toward converging . GAAP with IFRS Convergence: process by which . GAAP and IFRS will eventually merge to become a single set of accounting standards. App E-4 On November 15, 2007, the . Securities and Exchange Commission voted unanimously to accept from “foreign private issuers” financial statements that are prepared using International Financial .
