Wendy Harvey
Intermediate Acct 1
June 29, 2014
Bridging the “Gap” – GAAP and IFRS
Globally, it has been agreed that due to multinational Corpora*ons, mergers and acquisition
interna*onally, ac*ve international trading of securities and Informa*on technology that there is a need
for one set of high-quality interna*onal standards. Currently the U.S. uses GAAP, Generally Accepted
accounting Principles, and the foreign countries use IFRS, Interna*onal Financial Repor*ng Standards.
The FASB, Financial Accoun*ng Standards Board and IASB, international Accoun*ng Standards Board
have committed to the convergence of GAAP and IFRS. The “Norwalk” agreement states to make their
exis*ng financial reporting standards fully compa*ble as soon as possible, and coordinate their future
