The Lingering Differences between IFRS and GAAP

Examining the Largest Foreign Filers in U.S. Markets

Kennard S. Brackney, PhD, CPA, and Wenye Tang, PhD, CPA

In BriefIFRS is the predominant set of accounting standards used by listed companies outside the United States. Some of these companies pursue and achieve a listing in the United States, and many of those companies submit IFRS-basis financial statements to the SEC to support their listing in the U.S. market. This article examines the reporting by the largest foreign private issuers using IFRS to identify the differences they exhibit in their reporting with U.S. GAAP. The study documents a number of lingering differences with GAAP, some of which have significant impact on closely followed financial statement items. Absent a renewal of previous convergence efforts, or a decision by the SEC to require that U.S. domestic registrants adopt IFRS, the present condition will likely continue for the foreseeable future.