Research on Issues of Convergence between IFRS and GAAP

DOI: https://doi.org/10.62517/jse.202411514

Author(s)

Zhang Hanyi

Affiliation(s)

City University of Macau, Macao, China

Abstract

With the increasing integration of global financial markets, the convergence between the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) has become a key issue. This paper examines the fundamental frameworks of IFRS and GAAP, the driving forces behind their convergence, the challenges they face, the progress made, and future prospects. The paper highlights that, although progress has been made in areas such as revenue recognition and financial instruments, cultural and economic differences, transition costs, and differing stakeholder perspectives remain significant barriers. Looking ahead, gradual convergence, adaptable solutions, and technological innovations are potential pathways for achieving full convergence.

Keywords

IFRS; GAAP; Financial Reporting Standards; Convergence

References

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