Acta Univ. Agric. Silvic. Mendelianae Brun. 2011, 59(4), 27-36 | DOI: 10.11118/actaun201159040027

General approach to the IFRS and US GAAP convergence

Hana Bohušová
Ústav účetnictví a daní, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika

Two most significant organizations in the field of financial reporting regulation setters in the world - the Financial Accounting Standard Board (FASB) and the International Accounting Standards Board (IASB) have recognized that in order international capital markets to function properly, a single set of high-quality international accounting standards designed especially for listed companies around the world must exist. The effort should be especially aimed at spreading the IFRS around the world and the FASB - IASB Convergence. The most significant difference between the US GAAP and IFRSs is in the area of the general approach. The IFRSs are based on basic accounting principles with limited application guidance, US GAAPs are based especially on rules with specific application guidance. The main objective of this work is to assist in the development of an improved common conceptual framework that provides a sound foundation for developing future accounting standards.
The structure of the paper is divided into three parts. The theoretical background presents the historical development of the IAS/IFRS and US GAAP convergence efforts in general. The second part of the paper is aimed at the comparative analysis of conceptual frameworks (the IAS/IFRS and US GAAP). At the end, based on the results of the comparative analysis, the basic principles for a common conceptual framework, which should be applicable, are clarified. The paper uses the standard methods of scientific work. Firstly, the method of description is used to describe the development in the area of IAS/IFRS and US GAAP convergence. Then, a comparative analysis is used to discuss the differences in the position a principles of conceptual frameworks the IAS/IFRS and US GAAP. At the end the method of synthesis, deduction and induction is used.

Keywords: IFRS, US GAAP, conceptual framework, qualitative characteristics financial information

Received: January 28, 2011; Published: May 29, 2014  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Bohušová, H. (2011). General approach to the IFRS and US GAAP convergence. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 59(4), 27-36. doi: 10.11118/actaun201159040027
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. DEPREE, C. D., 1989: Testing and Evaluating a Conceptual Framework of Accounting: Abacus, March 1989. ISSN 0001-3072. Go to original source...
    2. DOPUCH, N., SUNDER, S., 1980: FASB's statements on objectives and elements of financial accounting: The Accounting Review 55, pp. 1-21. ISSN 0001-4826.
    3. FASB, 1978: Concepts Statement No. 1 - Objectives of Financial Reporting by Business Enterprises.
    4. FASB, 1980: Concepts Statement No. 2 - Qualitative Characteristics of Accounting Information.
    5. FASB, 2005: FASB Exposure Draft of a Proposed Statement of Financial Accounting Standards, The Hierarchy of GAAP.
    6. IASB, 2006: Preliminary Views on an Improved Conceptual Framework for Financial Reporting: Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information: IASCF, London. ISBN 1-905590-08-3.
    7. IASB, 2005: Mezinárodní standardy účetního výkaznictví 2005, SU, Praha. ISBN 1-904230-79-2.
    8. MILBURN, J. A., 1991: Building a Better Conceptual Framework, CA Magazine, December 1991. ISSN 0317-6878.
    9. MOZES, H. A., 1992: A Framework for Normative Accounting Research: Journal of Accounting Literature, Vol. 11, 1992. ISSN 0737-4607.
    10. NOBES, CH., PARKER, R., 2006: Comparative International Accounting, Prentice Hall, Edinburgh. ISBN 0-273-70357-9.
    11. SOLOMONS, D., 1978: 'The Politicization of Accounting', Journal of Accountancy, Vol. 146, No. 5, 1978. ISSN 1945-0729.
    12. WHITTINGTON, G., 2008: Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View. Abacus - A Journal of Accounting, Finance and Business Studies, Vol 44, No. 2, Sydney. ISSN 1467-6281. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content