Transition from US GAAP to IFRS

Name of Student

Name of Subject Course

Name of Professor

Date : Transition from US GAAP to IFRS

1 . Introduction

Proctor and Gamble is basically a US-based company and part of manufacturing industry of branded personal products . The company products are sold in over 180 countries in the world using the mass merchandisers , retailers , drug stores and membership stores as way to reach the final consumers . It has three major business units and several segments as way of strategy in provision of goods and services to different countries p

As a US-based company operating under US GAAP , the company may possibly be affected by the planned shift to the use of IFRS in the preparation of its financial statement . This seeks to explore one difference between IFRS and the US GAAP about the development costs for Proctor and Gamble in addition to possibly determining the possible problems that may arise internally with investors and in the analysis of company 's financial statements as a result of shift from the US GAAP to IFRS . As to why people feel the change and which will reflect a more accurate or misleading picture of the company will also be discussed

2 . How development costs could be recorded between the two standards

It is asserted that companies shifting from U .S . GAAP to IFRS for the first time should basically make retrospective application of all IFRS at the reporting in the financial statements . There are however certain exceptions that may be allowed by IASB...