Final Project
Similarities and Differences between U.S.GAAP and iGAAP – Intangible Assets
The global economy is regulated by two main accounting systems: (1) United States Generally Accepted Accounting Principles, also known as U.S. GAAP, and the (2) International Generally Accepted Accounting Principles, also known as iGAAP. As the abbreviations dictate, U.S. GAAP are the standards that regulate U.S. accounting procedures and iGAAP are standards that regulate international organizations. Both standards are alike with respect to language, procedures and reporting, but there are enough key differences in reporting that it keeps a steady discussion on which standard is more suitable for and international accounting system. This paper will explore the similarities and differences in the accounting of intangible assets that have been set forth by both U.S. GAAP and iGAAP.
The U.S. GAAP and iGAAP have been thoroughly working in partnership on the accounting standards merging and although many accounting regulations have already merged, there are areas of accounting reporting that are continuing to be discussed such as revenue recognition, financial instruments, and reporting of intangible assets. Once the areas of financial reporting are in the final stages of convergence, the United States will begin to move forward to a full implementation of iGAAP standards once final approval is received from the Securities and Exchange Commission (CCH Group, 2013). The key emphasis of the combining of standards is based on the similarity and streamlining in financial reporting as iGAAP is more principle-based and U.S. GAAP is more ruled-based (CCH Group, 2013). iGAAP regulates accounting standards in more than 110 countries and has some key differences from U.S. GAAP. On a theoretical level, iGAAP is viewed more as a "principles based" standard of accounting and U.S. GAAP is