What To Expect From IFRS Conversion

The conversion from generally accepted accounting principles (GAAP) in the United States as adopted by the Financial Accounting Standards Board (FASB) to one elected by an international board that reports on an international financial reporting standards, has already started to take place. Generally speaking, you should expect a slow move, that has currently began, in which GAAP rules are slowly converged with IFRS rules so a worldwide standard in place.

One major move forward on IFRS conversion is related to lease accounting. All leases will be recorded as liabilties and the classic four type lease test will be replaced by accrued lease obligations. This will be dually implemented by IFRS and GAAP and illustrates how the conversion will take place. More info: ifrs conversion

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