Similarities Between The US GAAP And International Financial Reporting Standards?

U.S. GAAP and International Financial Reporting Standards (IFRS), formerly known as iGAAP, are two accounting standards used in today’s world of financial reporting. These standards have differences as well as similarities in reporting requirements. Organizations in the United States are required to follow GAAP principles in preparing financial statements and other financial reports. Whereas, organizations outside of the United States may follow IFRS. Balance sheet reporting and formatting is an area in which GAAP and IFRS may differ, yet be similar in many respects. The balance sheet is a financial statement of what a company owns and what it owes at a given date and time (Spiceland, Sepe, & Nelson, 2013). This paper will address differences and similarities in respect to balance sheet reporting and formatting as it relates to fixed assets and liabilities, inventory, and goodwill.
First, GAAP and IFRS differ in how assets should be listed on the balance sheet. A GAAP balance sheet does not require that current and

Both of the accounting standards consider goodwill to be an intangible asset. Yet, goodwill is never amortized under either of the systems, but it must be tested regularly for impairments. According to GAAP, “an impairment loss is the amount by which the carrying amount of goodwill exceeds its implied fair value in the reporting unit” (L, 2012). Whereas, IFRS has a one step-approach that compares the carrying amount of goodwill to its recoverable amount. When the carrying amount of goodwill is greater than its recoverable amount, an impairment loss is recognized. Accordingly, while continuing accounting policies in respect of goodwill are similar under both GAAP and IFRS, the difference in how impairments are defined and recognized will result in different amounts being recorded on the balance