IFRS Overview and Comparison with US GAAP

Study Notes

IFRS stands for International Financial Reporting Standards.
The IFRS foundation is a non-profit organization that sets global accounting standards.

There are differences between International and US financial reporting requirements.
IFRS and US GAAP are global accounting standards that aim to bring uniformity and comparability to financial reporting.
IFRS stands for International Financial Reporting Standards.
US GAAP stands for Generally Accepted Accounting Principles in the United States, and is used by US companies and companies that list on US stock exchanges.
IFRS focuses on developing accounting standards in its own rules, whereas US GAAP will follow their own national standards.

The regulatory context is a backdrop for corporate reporting.
IFRS is a standardized system for reporting financial information.
The EU chose to adopt IFRS due to its international recognition and benefits.
IFRS is used by companies worldwide promoting global financial transparency and comparability.
Equivalence and convergence are integral concepts in global financial reporting.
The term equivalence refers to the alignment of accounting standards within a country with international standards.
Convergence involves the harmonization and alignment of standards to achieve consistency and reduce conflicts.
IFRS's significance stems from its global reach and influence in shaping international accounting policies.
The IFRS Foundation is a non-profit organization that oversees the development of IFRS standards.
The IASB (International Accounting Standards Board) is a body within the IFRS Foundation responsible for issuing and maintaining the IFRS standards to promote transparency and comparability in financial reporting.
The IASB's process for developing new accounting standards begins with a discussion paper (DP) to discuss preliminary concepts and then exposure drafts (EDs) to gather feedback.
The EDs are used to gather feedback and consider various perspectives, and then revised based on the input received.

Companies must disclose Management Discussion and Analysis (MD&A) information in addition to their financial statements.
MD&A is information about a company's financial performance.
The main accounting standards are:
- International Accounting Standards (IAS)
- International Financial Reporting Standards (IFRS)
- Generally Accepted Accounting Principles (GAAP)
IFRS is composed of a set of IASs.

The IFRS foundation's mission is to ensure transparent and comparable financial data.
Having a common international language of financial reporting (IFRS) allows stakeholders to make informed decisions around the world.
IFRS promotes accountability and transparency in the financial reporting process.
IFRS allows for a global reach of financial reports and is considered a standard for global corporations to easily disseminate their data.