Meet Converging IFRS and US GAAP Standards
Since the onset of the financial crisis, the International Accounting Standards Board, in conjunction with the Financial Accounting Standards Board, has sought to streamline global financial reporting in part by addressing differences between US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS).
Because it offers greater accounting flexibility, the boards consider the "principles-based" IFRS a viable candidate for global-accounting alignment, and have proposed moving toward GAAP-IFRS convergence. To date, over 100 countries have incorporated IFRS accounting standards. The SEC continues to hold discussions around IFRS; though it remains to be seen whether a full convergence of IFRS/GAAP will take place, some adoption of IFRS seems likely.
The transition from GAAP to IFRS could pose a number of significant challenges for private equity firms. Deal structuring as well as post-acquisition analysis may be impacted; despite the promise of new global opportunities, IFRS would also expose funds to increased competition.
Download Investran's whitepaper to learn more about newly implimented IFRS guidelines and how technology can help you meet industry demands.
Please submit your details into the short form below to gain access to the whitepaper.