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...ds. They also created new training opportunities within companies. IFRS is not a perfect set of rules but according to a variety of sources and surveys, International Financial Reporting Standards are successful in many countries. Some of the benefits are multinational companies can use common financial reporting systems, IFRS may ease financial statement comparability among companies, and IFRS is intended to facilitate cross-border investments and access to global capital markets (AICPA 2). “Other key benefits include opportunities to improve business functions and processes, globally integrate the financial IT systems, and achieve consolidation reporting efficiency” (AICPA 2). Although IFRS standards are not required in the United States It would be interesting to see companies in the U.S. adopting International Financial Reporting Standards and embrace change.
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- In the world of international finance there are two major accounting systems; GAAP, which stands for Generally Accepted Accounting Principles, and IFRS, which stands for International Financial Reporting Standards. The United States prefers GAAP while the European market, as well as many other countries, prefers IFRS. By 2015 the Securities Exchange Commission is anticipating a total transfer to IFRS in the United States. Though the differences between GAAP and IFRS are few, they could affect accuracy of financial reporting throughout the world.... [tags: finance, global standards]
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