What are some of the major differences between GAAP and IFRS?

ACCT 106 – Fall 2019 Individual Research Project

International Financial Reporting Standards (IFRS) is a globally accepted standard for accounting, and is used in more than 110 countries. On the other hand, Generally Accepted Accounting Principles (GAAP) is exclusively used within the United States and has a different set of rules for accounting than most of the world. This can make it more complicated for US companies when doing business internationally.

As an accounting professional or business owner, it’s vital to know the variations of these accounting methods, in order to successfully manage your company globally, as well as domestically.

The question I would like you to research is this.

What are some of the major differences between GAAP and IFRS?

1. Write a three to five page report answering this question. Items that you should consider in answering this question include, but are not limited to, the following:
a. Provide a detail description of what you determine the major differences to be.
b. What do you believe is the reason these 2 sets of accounting standards both exist?
c. Do you believe these 2 sets of standards will always exist or do you think the United
States will eventually adopt IFRS?

2. In the preparation of your report, you should use at least three sources (e.g., AICPA web site, journal articles, national magazines, newspapers, etc.) for information. The report must not be simply a collection of individual article summaries. Rather, it should be a comprehensive analysis that utilizes multiple sources. All utilized sources must be cited. Furthermore, simply providing a citation does not allow for directly cutting and pasting entire sections from the original sources. Rather, citations provide you the right to discuss general ideas that were taken from a source. Any evidence of large portions of the report simply being cut and pasted from any source will result in a score of zero. If necessary, use quotations marks to indicate a highly technical phrase has been taken from a source which could not be re-written.

3. I should be able to hand your report to an ACCT 106 student in the future, and they should be able to clearly understand the major differences without looking up any further information.

4. You must work as an individual. Copying and pasting sections of the report from another individual will result in a grade of zero.

5. This project must be prepared as a cohesive document. As such, subheadings will be necessary in order to increase the organization of the report.

6. Your title page and reference page do not count towards the number of pages requirement.

7. Your report must satisfy the subsequent parameters:

• The report must be organized in an easy to follow format. For example, headings and subheadings can be employed to enhance organization. However, do not end a page with a subheading.
• Use consistent formatting. For example, leave the same number of empty spaces at the end of each sentence and the same amount of blank lines following each subheading.
• Remember the following to increase the professionalism of your writing:
• Avoid redundancy. For instance, do not use the same phrase such as “The” or “This” to initiate multiple sentences located closely together. Also, utilize synonyms such as “nevertheless” in place of “however” to diversify your writing.
• Write in an objective rather than emotional manner.
• Avoid colloquial (e.g., informal or conversational phrases such as “buried in a mountain of vague surrounded by a fog”).
• Eliminate spelling errors.
• Use clear and concise sentences.
• Do not use slang or phrases that would be viewed as unusual in business.
• Times New Roman font style and 12 font size must be used.
• 1 inch margins on the top, bottom and both sides must be used.
• Paragraphs generally should not take up an entire page. Exceptionally long paragraphs generally have multiple ideas within them that often are better served being presented within separate paragraphs. However, single sentence paragraphs should also be avoided.
• This report should be written to a quality level that you would be proud to send it to prospective employers as an example of your writing skills.

8. All of the articles must not come from the same source (i.e., you must use multiple journals to find your articles). Please be clear on the reference page of your paper as to the sources you utilized. I should be able to locate your sources without expending any significant effort.

In addition, care must be taken to ensure that all discussed aspects of issues are still current. This means that you should verify there have been no new developments that may contradict aspects of issues discussed.

9. This project is designed to give students practice at researching and explaining relevant accounting issues. As such, it is critical that a professional tone is utilized on this report.

A typed copy of the report must be uploaded in Canvas by the date noted above. Everyone is welcomed to turn their report in earlier if completed early; however, all reports turned in after the due date will receive a score of zero. This project is worth 50 points.