GIGAMIND

Folder:
115 CFA
File:
115.040.02.05 Financial Analysis - Reading 20 - 5. Comparison of IFRS with Alternative Reporting Systems

5. Comparison of IFRS with Alternative Reporting Systems

e. describe implications for financial analysis of alternative financial reporting systems and the importance of monitoring developments in financial reporting standards.

Why do the differences between IFRS and US GAAP matter?
Although these standards are moving toward convergence, there are still significant differences in the framework and individual standards. Frequently, companies provide reconciliations and disclosures regarding the significant differences between reporting bases. These reconciliations can be reviewed to identify significant items that could affect security valuation.


Source:
  • CFA