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Globalization has led to most countries teaching and following axioms of IFRS. United States based companies stick to the rules of GAAP which causes problems for Usa businesses that are looking for to accomplish business internationally. Both practices of accounting offered accurate and useful interpretations of a company’s financial situation. However comparing a financial declaration that was made after GAAP to a statement that follows IFRS can lead to significant discrepancies.

The United States uses GAAP or accounting that is generally accepted for economic reporting. GAAP are rules that must be followed on monetary statements and just are appropriate within the United States. Unlike GAAP, IFRS or International Financial Reporting Standards is principal based. This implies whenever business transactions happen GAAP must follow a progression that is certain of to record it. Whereas IFRS is able to interpret the deal is a few ways that are different. Another difference with …