Staying on top of GAAP and IFRS convergence
The efforts by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) to converge across a number of key accounting reporting standards is driving significant change for companies that report financials using US GAAP and IFRS. The newly converged lease and revenue recognition standards are examples of the convergence that is focused on creating globally consistent financial reporting using principle-based accounting.
Changes to leases and revenue recognition, in addition to other forthcoming accounting changes in IFRS and US GAAP, are having a major impact on the way companies account and report various transactions and interests. Implementing the new standards, as well as those currently under discussion, are and will be transformational for certain businesses.