Differences between US GAAP and IFRS during the years of financial crisis within basic conceptual figures as well as at the cash flow statements

摘要

Generally Accepted Accounting Principles (GAAP) are widely accepted and approved by the US Securities and Exchange Commission (SEC) while the International Financial Reporting Standards (IFRS) are a set of international accounting standards for business purposes and for a common reporting methodology. Globalization creates the need for the implementation of globally accepted accounting standards. IFRS and US GAAP need to converge in order to eliminate the gap between them. So far, at least 127 countries have adopted IFRS and this number is expected to rise to 150. During the convergence process, IFRS are expected to have an increased impact on international markets as they reflect more accurately the financial status of a company, In the present paper, the differences and convergence of the two sets of accounting standards (U.S. GAAP and IFRS), stemming from the ongoing global financial crisis, are presented.