
U.S. GAAP or IFRS - A Review of Literature
Author(s) -
Shalu Bansal
Publication year - 2022
Publication title -
journal of accounting, finance and auditing studies
Language(s) - English
Resource type - Journals
eISSN - 3005-9844
pISSN - 2149-0996
DOI - 10.32602/jafas.2022.010
Subject(s) - accounting , scope (computer science) , international financial reporting standards , business , originality , accounting standard , value (mathematics) , fair value , financial accounting , accounting information system , computer science , political science , machine learning , creativity , law , programming language
Purpose: This paper purpose is to report the differences between U.S. GAAP and IFRS by presenting a review of literature available on the topic. Methodology: This paper is based on review of 27 research papers. This paper is divided into two parts. First part presents the previous studies focused on business aspects (companies can ill afford the cost of an increasing number of GAAP standards and impact on investors) and second part presents the previous studies focused on fundamental differences between U.S. GAAP and IFRS.Findings: This paper is based on review of literature that present the differences between U.S. GAAP and International Financial Reporting Standards (IFRS). As per the studies done, U.S. GAAP contains more detailed, specific requirements than IFRS. In some instances, IFRS does not contain any corresponding guidance and, in others, IFRS contains higher-level or general guidance that is not directly comparable to the U.S. GAAP requirement.Originality/Value: This paper findings are based on 27 research papers only. As accounting standards are changing due to change in current economic situations, there is a large scope for the future studies based on U.S. GAAP and IFRS differences and impact of those difference on the investors.