What does the transition to IFRS mean for U.S.-based businesses?
U.S. businesses are becoming worldlier, and they want to be able to have a seamless transition between being a U.S.-only company and being an international company. The way to account for different transactions guides your hand on how those transactions are formed and structured. For example, you might structure a contract so that you have revenue recognition in the U.S. one way, but your counterpart transacting with you may have different expense recognitions in another country. Under IFRS, all parties will be recognizing these transactions at the same period. The major differences will be around revenue recognition, timing of expense recognition and equity transactions. The way you report under U.S. GAAP can be significantly different than the way you will report under IFRS. As we move into a period of increased mergers and acquisitions on a global scale, you’ll see that both accounting standards — GAAP and IFRS — will continue to change and develop. IFRS is going to remove cross-bor
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