Wendy Harvey
Intermediate Acct I
May 12, 2014
GAAP and IFRS
There are three models for setting GAAP. There is the political approach where national
legislation action decrees GAAP. There is the private/professional approach, where GAAP is set
and enforce by private professional actions only, and then there is the public/private mixed
approach, where GAAP is set by private-sectors whose standards are often dictated through
government agencies. The United States uses the latter mixture because it has the highest
insurance that public, private, and political entities are held to the same standards. This is in the
