INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) VS. US GAAP: A GLOBAL PERSPECTIVE

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In light of the growing tendency of firms extending their operations into international markets, the adoption of worldwide accounting standards has become more urgent. The direction of attempts to bring international accounting standards closer to parity with US GAAP has been drastically changed as a result of two recent opinions issued by the SEC with a considerable impact. This article discusses the consequences that the SEC's decision to allow international enterprises to use IFRS in financial reporting, separate from reconciliation to US GAAP, has had on investors, multinational corporations, and global financial reporting by examining the implications of this decision. The idea that the Securities and Exchange Commission (SEC) has to bring together foreign authorities to discuss the harmonization of accounting standards is also discussed. According to the Securities and Exchange Commission (2018), the International Accounting Standards Committee Foundation (IASCF) is planning to establish a Monitoring Group that will include of the European Commission, the Japan Financial Services Agency, and the International Organization of Securities Commission (IOSC). In this section, we will examine the differences between IFRS and US GAAP. After careful consideration, the authors have arrived at the conclusion that there is an immediate need for a unified set of global accounting standards that are based on both IFRS and US GAAP. Many of the problems that have been plaguing the globe's financial reporting system will be resolved, and as a consequence, the economy of the whole world will become more secure and prosperous.