Comments

Original document was submitted as an honors thesis requirement. Copyright is held by the author.

Document Type

Thesis

Abstract

Should the United States (U.S.) companies use International Financial Reporting Standards (IFRS) instead of the U.S. Generally Accepted Accounting Principles (U.S. GAAP)? This paper examines the degree of deviation between the firms' earnings, under both financial reporting languages, and the causes for the change in earnings. Utilizing two methods, introduced in this paper, as well as t-testing, the sampled firms reported higher earnings under IFRS. The change in earnings was caused by: financial instruments, minority interest, pension activities, and or share-based compensation activities. Based on the analyses, the firms appear healthier under IFRS than under the U.S. GAAP in terms of earnings.

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