GAAP Vs IFRS

The crash of the stock market had an impact on U.S. accounting standards. The federal government had established the SEC in order to create better financial standards. The SEC brought upon multiple organizations such as the AICPA, FASB and others that have all contributed to the U.S. GAAP. FASB is known for organizing GAAP and its two thousand some documents into a location known as FASB’s GAAP codification. Outside of the U.S. most countries follow IFRS for their financial reporting. IASB and the SEC have recognized that establishing one set of accounting rules would best suit the global market. They have not yet been able to make this happen but both have started to adopt some rules from each other’s accounting standards.