Differences Between IFRS and GAAP Could Create Challenges for Educators

International Financial Reporting Standards:

Where are We and What is the Role of U.S. Educational Institutions?

International Financial Reporting Standards (IFRS) are financial standards set forth by the International Accounting Standards Board (IASB). These standards are the international equivalent to the U.S. Generally Accepted Accounting Principles (GAAP) set forth by the Financial Accounting Standards Board (FASB). Both sets of standards provide authoritative literature for public companies under their jurisdiction.

Discussion of adopting IFRS for U.S. public companies has generated a lot of discussion over the last several years. The U.S. Securities and Exchange Commission detailed a proposed roadmap for conversion on November 14, 2008. While the new administration has not embraced the roadmap at this point, the general belief is that some form of convergence or conversion will occur as we move forward, but that the timeline may be pushed back from the proposal.

This decision, regardless of the timing, may ultimately add to the massive amount of material educational institutions will need to cover in accounting programs.
Differences in IFRS and GAAP

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