Accounting And International Accounting

The global economy is regulated by two main accounting systems: (1) United States Generally Accepted Accounting Principles, also known as U.S. GAAP, and the (2) International Generally Accepted Accounting Principles, also known as iGAAP. As the abbreviations dictate, U.S. GAAP are the standards that regulate U.S. accounting procedures and iGAAP are standards that regulate international organizations. Both standards are alike with respect to language, procedures and reporting but there are enough key differences in reporting that it keeps a steady discussion on which standard is more suitable for and international accounting system. This paper will explore the similarities and differences in the accounting of intangible assets that have been set forth by both U.S.

These include franchise licenses, trademarks, patents, trade names, copyrights, government licenses, goodwill, etc. The key characteristics of an intangible asset is they are not monetary and not of physical existence, but they are recorded as long-term and provide long-term benefits. An intangible asset will be reported in the balance sheet as value holding and/or cash generating trademarks, licenses, patents, copyrights, etc. Organizations in specific industries such as drug, music, or the consumer products industry find it crucially important to report intangible assets.
The reporting of intangible assets is an area where there are few similarities in using the regulations of iGAAP or U.S. GAAP; however, there are some significant differences between the two with respect to accounting of intangible assets. Some differences in reporting are so significant that it constantly rises up for discussion. "It is unlikely that this debate will cease since the fair value accounting practices are endorsed both by the Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB)" (Uzma, 2011, pg.