IFRS as an Important Part in Commercial Companies

Ariet Malaj

doi:10.7176/rjfa/12-8-02

Abstract

IFRS are important for all the companies. The first priority of the Financial Accounting Standards Board (FASB) is to improve financial reporting for the benefit of investors and other users of financial information in U.S. capital markets. We do that by striving to set the highest-quality standards, which collectively are known as Generally Accepted Accounting Principles (GAAP). By highest quality, we mean standards that provide users of financial statements with information that is clear, useful, and relevant to their needs, while considering whether the expected benefits of that information justify the costss of providing and using it.The FASB believes that seeking more comparable global accounting standards—improving the quality of accounting standards used around the world while reducing differences among those standards—is consistent with its core mission. Investors, companies, auditors, and other participants in the U.S. financial reporting system benefit from the increased comparability that can result from the closer alignment of standards used internationally. More comparable standards have the potential to reduce costs for both users and preparers of financial statements and make worldwide capital markets more efficient. The Securities and Exchange Commission (SEC) expects the FASB to consider, in developing standards, the extent to which international comparability is necessary or appropriate in the public interest and for the protection of investors. DOI: 10.7176/RJFA/12-8-02 Publication date: April 30 th 2021

Highlights

As we conclude the bilateral convergence program begun in 2002 by the FASB and the International Accounting Standards Board (IASB), the FASB has implemented a three-part strategy for seeking greater comparability in accounting standards internationally: 1. Developing high quality GAAP standards 2
In response to feedback from investors and others that GAAP was largely meeting their needs, the FASB abandoned the fundamental revisions necessary for full convergence to focus on more targeted improvements. In their bi-lateral convergence program, the FASB and IASB concluded that international comparability would be enhanced if GAAP and International Financial Reporting Standards (IFRS) used the same words and phrases
In July 2012, the SEC staff issued its final staff on the “Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S Issuers.”

Summary

Introduction

As we conclude the bilateral convergence program begun in 2002 by the FASB and the International Accounting Standards Board (IASB), the FASB has implemented a three-part strategy for seeking greater comparability in accounting standards internationally: 1. Developing high quality GAAP standards 2. 1.Introduction As we conclude the bilateral convergence program begun in 2002 by the FASB and the International Accounting Standards Board (IASB), the FASB has implemented a three-part strategy for seeking greater comparability in accounting standards internationally: 1. Participating in the development of International Financial Reporting Standards (IFRS) 3.

Results

Conclusion