Generally accepted accounting principles refer to a common set of accepted accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements. Our point of view We continue to believe in the long-term vision of a single set of consistently applied, high-quality, globally-accepted accounting standards.
Once the convergence effort is acknowledged and its results identified, are both standards still different? Classification of Liabilities The classification of debts under GAAP is split between current liabilities, where a company expects to settle a debt within 12 months, and noncurrent liabilities, which are debts that will not be repaid within 12 months.
For example, systems will have to be upgraded in order to gather information on liquidity risks in accordance with IFRS 7 — Financial Instruments — Disclosures.
From an investor perspective, the need to understand IFRS is arguably even greater. This allows a business to leverage depreciation on fixed assets.
Compare Investment Accounts. Final Thought Experiences in other countries, especially in Europe, show that the process is more complex and lengthier than anticipated.