So fantasitic the video is. As a beginner of accounting and non-native English speaker, I can clearly get a clear and logical understanding. Thank you very much.
@@박프로-r1e The reason is really a political one, FASB cannot loose the power to regulate the accounting profession in the US. Just think about this, FASB loosing the power to tell US corporations all accounting rules on X, Y or Z topic. That is a lot of power they are not willing to switch to the IASB. My career has been an international one and I only see IFRSs not US GAAP anymore.
This is a very good summary of the diff. btw US GAAP and IFRS and also why the differences won't be eliminated in the near future due to some practical reasons such as US gov. control power of the accounting standards and also tax issue even though some new standards issued by US GAAP and IFRS recently such as Revenue from contracts with customers are basically the same.
I can't believe that, as an adult/mature student, I am still sat here in August 2020,having to Google and RUclips even the most basic terminology and still struggling to understand it and already extremely exhausted. The tutors not just at university but maths tutors at secondary schools should have taught this important information day from day 1. I chose the discipline of business however once again I missed all my exams and assessments and resits due to health issues, the lockdown and other extreme struggles stifling my studies. I am sat here staring at a mostly blank table of IAS/ IFRS SSAP/FRS OLD AND NEW TERMINOLOGY and trying to find a reliable source that tells me this in clear english. This is only a starter activiity never mind the assignments and exams. If anyone can understand my concerns and believes they can help, please kindly advise, for UK based study. Thanks in advance.
theres different types of learning. i used to 'watch' these kinds of videos but when i closed my eyes not only did i understand more but i actually ended up speeding up the video. turns out that visual input for me is too much of an overload and crashes my brain because my brain ends up trying to interpret EVERYTHING even something as small as hand gestures and eye glances.
I know this is not much of a technicals channel, but if you could do a video on reconciling GAAP and non-GAAP accounting data from an equity research perspective I think it's gonna help a lot of folks out there.
Thank you sir for the info!! I and I’m SURE MANY OTHERS are MOST DEFINITELY APPRECIATE you taking the time to share all the info you do!! I’m the same way if I can help someone even if they end up having or making more then me IDC!! I feel great in my heart knowing how I helped changed someone life!!! AGAIN THANK YOU SIR AND KEEP UP THE HARD WORK!!! 👍
Thank you so much Sir for letting us know about this wonderful topic. I really appreciate your efforts to make such a great informative video and share with us. 👍👍
in 2023, isn't there a software in which companies can put in the accounting information and let preset settings present them in either IFRS or GAAP compliant format?
I know this is off topic but do you know what is supposed to happen in the official rules of monopoly when the bank runs out of money? A: You draft your own 😉 Great video. Subscribed.
Thanks for your video Can you please elaborate your disussion on the difference between IFRS US GAAP on inventory valuation, Development costs, Reversal of unabsorbed losses, etc
Thank you thank you so much for being so animated and entertaining. I seriously got more out of your video than any accounting video ever and you have proved this subject does not need to be boring. I hate monopoly. There is no "free parking" instructions included with the game. I like to play with people who give it meaning and allow players to collect money (we throw the tax dollars in the middle of the board and use that as the "free parking" space giveaway. It is my only lifeline for playing monopoly - otherwise I seem to hate the game just as much as the takeovers and merges and monopolies and oligopolies of real businesses that feed off the poor.
Excellent video, thanks Zach. I've been waiting for this comparison for a while. Appreciate it. I was surprised you didn't' mention the IASB, but then, they're only a function of the IFRS Foundation. One area where I slightly differ from you on the standardization of accounting frameworks, is the notion that the US would have to go ask permission to make new standards and changes. Taking your example of Commercial Space industry, it would be useful if the US, Russia, China and all the other countries (who are also working on Space expansion) to all be on the same page. Even my country, South Africa has a Space Program (given, it's only about 8 years old, but I digress). The SEC would be one of the senior consulting bodies (representing one of the largest economies in the world, if not THE largest) that the IASB would consult with prior to releasing a new standard, and the SEC would probably also be the body to facilitate the implementation thereof in the US. Yes, the US will be giving up a lot, but the US is also only giving up the US side and the majority of the planet has already given up that from their own countries. Canada, New Zealand and Australia, the EU, China and may other countries all have either fully adopted IFRS or adapted IFRS to suit their unique needs (and call it something similar). The majority of the European continent has even given up their own currency. Having said that, we are talking about a lot of money being affected, and for that reason the world is still negotiating with the US. It seems that the US is going with a "my way or the hiway" approach. Please don't see this comment as an argument or "hate", it's only my opinion. Thanks for the videos. 👍
As a US citizen, I don't see it as "My way or the highway", I see it as the US way when in the USA, the international way when abroad. If a company wants to, they can comply with IFRS standards. Many American companies do comply with IFRS standards for financial reasons. We don't need to mandate IFRS standards by law, we only need for it to be clear what standards a company complies with so investors can see if they want to make an investment or not. If a company is domestic only (and isn't looking for international investors) then why should they worry about international standards? I just can't see the US government ceding it's regulatory authority within it's own borders. Then again, I'm just studying this as a part of my accounting 101 class and I could change my mind after I learn a bit more.
Americans are lucky. Here in the Philippines we take all exams in 1 sitting on top of having 6 subjects. but in america you can stagger in 18months. And we follow IFRS,IAS,COSO, and other american and international standards. The passing rate here is incredibly low not even reaching 20% or above. And i saw some filipinos topping some american certification and licensing exams. Almost every reviewer present examples adapted from either IAA, AICPA, IFRS, etc..
Hello, Thank you for this great video, like it indeed. One point to raise, though, if I may...........You provided a great example (at 3:14) and mentioned that both the Standards differ on treatment of (cost method of) Inventory for example the LIFO method. You narrated that most of the US companies follow the LIFO method in order to report lesser profits and to reduce the tax-liability. However, the Tax-Balance Sheet is prepared according to the (local) Tax-Laws and not according to the Accounting Standards. That's how the term deferred tax assets and deferred tax liabilities come in to picture. Would you like to help me understand? A detailed and productive reply would be very much appreciated. Many thanks in advance! Greets from Germany!!
Thanks for the information. I have a question, if you don't mind. I am an accounting student in Italy. I usually like to integrate my education by taking online courses and certificates, both to boost my resume, but mainly because I enjoy to learn more at my own pace without having to worry about exams. The problem is, Italian internet accounting culture is no way near as developed as the one present in the US. There are a lot of nice courses on accounting that are based on GAAP, and so far I wasn't able to find a complete accounting course based on IFRS. So, my question is: does it make sense for me to learn GAAP regardless? Is it so different that will cause confusion in my academical education?
I would focus on the accounting standards for your geographical area. For Italy, I would study IFRS. The standards change every year, so it is hard enough keeping up just with your local standards. Good luck on your studies. Thank you for watching!
The IFRS official website has resources for students and a emailing list so that you can be notified of updates. I didn't really look into those options, but I saw them on the website.
Thank you for sharing this interesting information.. great video.. I am just wondering, as you said GAAP are based on rules and more detailed but that did not prevent financial crisis (Ex.2008)
That is why IFRS being principle based & not requiring the detail provides a lot of space to do things that should be illegal, but not spelled out as being illegal. Making IFRS scaring in it's application for business.
Thank you for the comparison. I think though that you neglected the efforts made by both organisations to homogenize their accounting standards and which worked for the most part but was put on hold by the US GAAP later on
According to monopoly.wikia.com/wiki/Free_Parking, nothing happens when you land on the space of Free Parking. However in Monopoly City, if you land on the Free Parking space, you get a Rent Dodge Card. Also in computer game versions, you can alter the free space rule.
I am writing after you made it 3 years back. This is good. But you have covered only two major differences. Rules vs. Principles and LIFO vs.FIFO. If any standard is rules based, it will be like a railway platform where trains will keep coming and going. So the standard will continuously change. That is a problem. Secondly LIFO is a good concept but it has some basic problems. The accounting concept is historical and not on current costs. So it conflicts. Secondly as you have rightly said it will show less profit because cost of consumption will be at current costs but the closing inventory will be in older value. That is a big problem. Tax authority will not accept and the co. will have to make separate accounts for tax. I always advocate for one accounting standard globally.
Finally, a video which is more clear on the differences. Thank you sir 👍
So fantasitic the video is. As a beginner of accounting and non-native English speaker, I can clearly get a clear and logical understanding. Thank you very much.
After seeing a very clear difference between GAAP & IFRS , I can not stop myself to suscribe your channel because I want that type of videos more....
This was so helpful. Your examples and lively energy kept me engaged. Thank you!
Thank you very much, it's really an informative, now I understand why US is not adopting IFRS standards..
Thank you for watching!
Chethan Kumar what do you think the reason is
@@박프로-r1e The reason is really a political one, FASB cannot loose the power to regulate the accounting profession in the US. Just think about this, FASB loosing the power to tell US corporations all accounting rules on X, Y or Z topic. That is a lot of power they are not willing to switch to the IASB. My career has been an international one and I only see IFRSs not US GAAP anymore.
Thanks
Now, I can understand why US stick to its own method of accounting, thank you for explaining the difference between ifrs and gaap
Thank you for watching!
@@WolvesAndFinance super knowledge
This is a very good summary of the diff. btw US GAAP and IFRS and also why the differences won't be eliminated in the near future due to some practical reasons such as US gov. control power of the accounting standards and also tax issue even though some new standards issued by US GAAP and IFRS recently such as Revenue from contracts with customers are basically the same.
I can't believe that, as an adult/mature student, I am still sat here in August 2020,having to Google and RUclips even the most basic terminology and still struggling to understand it and already extremely exhausted. The tutors not just at university but maths tutors at secondary schools should have taught this important information day from day 1. I chose the discipline of business however once again I missed all my exams and assessments and resits due to health issues, the lockdown and other extreme struggles stifling my studies. I am sat here staring at a mostly blank table of IAS/ IFRS SSAP/FRS OLD AND NEW TERMINOLOGY and trying to find a reliable source that tells me this in clear english. This is only a starter activiity never mind the assignments and exams. If anyone can understand my concerns and believes they can help, please kindly advise, for UK based study. Thanks in advance.
theres different types of learning. i used to 'watch' these kinds of videos but when i closed my eyes not only did i understand more but i actually ended up speeding up the video. turns out that visual input for me is too much of an overload and crashes my brain because my brain ends up trying to interpret EVERYTHING even something as small as hand gestures and eye glances.
Thanks for this. You just saved me from a whole lot of headaches
Now this is what i call "lecture" .....and everyone else....they go all around the universe and then come to the topic....BTW... Thank you sir.
@sad status nah...
thank you mohib bhai
I know this is not much of a technicals channel, but if you could do a video on reconciling GAAP and non-GAAP accounting data from an equity research perspective I think it's gonna help a lot of folks out there.
This is last days of 2021. I loved the info bro keep the good work up
This guy is Great in explaining. He could be a good professor.
i speak french but i understand english a little bit and i can tell you that you’re very smart, very good video
Thank you sir for the info!! I and I’m SURE MANY OTHERS are MOST DEFINITELY APPRECIATE you taking the time to share all the info you do!! I’m the same way if I can help someone even if they end up having or making more then me IDC!! I feel great in my heart knowing how I helped changed someone life!!! AGAIN THANK YOU SIR AND KEEP UP THE HARD WORK!!! 👍
Thanks for the great comment. Glad you are enjoying the videos. Keep up your great attitude. It does make a difference.
I like that you hit on the real reasons behind wanting IFRS to be adopted in the US, money. It's allllways about the money. Good video, thanks.
this is a great insight to other side of the story for the rest of world, I am learning IFRS.
You’ll be a very good accounting’s teacher sir
Fantastic brief explaination about the differences between GAAP AND IFRS.
Thank you for watching!
Thank you so much Sir for letting us know about this wonderful topic. I really appreciate your efforts to make such a great informative video and share with us. 👍👍
Thank you for watching!
Wow! This is a very in-depth video on LIFO and FIFO
in 2023, isn't there a software in which companies can put in the accounting information and let preset settings present them in either IFRS or GAAP compliant format?
I know this is off topic but do you know what is supposed to happen in the official rules of monopoly when the bank runs out of money?
A: You draft your own 😉
Great video. Subscribed.
Excellent video. GAAP is the standard here in the UK which companies want accountants to follow rather than IFRS
Thanks for your video Can you please elaborate your disussion on the difference between IFRS US GAAP on inventory valuation, Development costs, Reversal of unabsorbed losses, etc
Thank you this was the first time I understood the difference between GAAP and IFRS
Thank you for watching!
Very good explanation
Fantastic elaboration, thank you for keeeping the video focused and crisp, love to hear more of your content
had to write a paper on this topic. Sited your video. So helpful! Thank you.
Thank you thank you so much for being so animated and entertaining. I seriously got more out of your video than any accounting video ever and you have proved this subject does not need to be boring. I hate monopoly. There is no "free parking" instructions included with the game. I like to play with people who give it meaning and allow players to collect money (we throw the tax dollars in the middle of the board and use that as the "free parking" space giveaway. It is my only lifeline for playing monopoly - otherwise I seem to hate the game just as much as the takeovers and merges and monopolies and oligopolies of real businesses that feed off the poor.
LOL. I like the way you play Monopoly. Thank you for watching!
Hi. Why USA do not adopt the IFRS?
Talk about Accounting Policy pls. What answer should be if someone is asked about which Accounting Policy one follows???.
So what are other difference between the two. Your presentation was really helpful. Thank you
this is the most beneficial video i have ever watched , Now i have a clear idea of what i have been looking for :)
Thank you for watching!
Thank you so much Sir for letting us know about this wonderful topic, it was help full information .
Excellent video, thanks Zach. I've been waiting for this comparison for a while. Appreciate it. I was surprised you didn't' mention the IASB, but then, they're only a function of the IFRS Foundation.
One area where I slightly differ from you on the standardization of accounting frameworks, is the notion that the US would have to go ask permission to make new standards and changes. Taking your example of Commercial Space industry, it would be useful if the US, Russia, China and all the other countries (who are also working on Space expansion) to all be on the same page. Even my country, South Africa has a Space Program (given, it's only about 8 years old, but I digress). The SEC would be one of the senior consulting bodies (representing one of the largest economies in the world, if not THE largest) that the IASB would consult with prior to releasing a new standard, and the SEC would probably also be the body to facilitate the implementation thereof in the US.
Yes, the US will be giving up a lot, but the US is also only giving up the US side and the majority of the planet has already given up that from their own countries. Canada, New Zealand and Australia, the EU, China and may other countries all have either fully adopted IFRS or adapted IFRS to suit their unique needs (and call it something similar). The majority of the European continent has even given up their own currency. Having said that, we are talking about a lot of money being affected, and for that reason the world is still negotiating with the US. It seems that the US is going with a "my way or the hiway" approach.
Please don't see this comment as an argument or "hate", it's only my opinion. Thanks for the videos. 👍
Thanks for watching! Glad you found it helpful. I'll have to do some research on the South African National Space Agency.
As a US citizen, I don't see it as "My way or the highway", I see it as the US way when in the USA, the international way when abroad. If a company wants to, they can comply with IFRS standards. Many American companies do comply with IFRS standards for financial reasons. We don't need to mandate IFRS standards by law, we only need for it to be clear what standards a company complies with so investors can see if they want to make an investment or not. If a company is domestic only (and isn't looking for international investors) then why should they worry about international standards? I just can't see the US government ceding it's regulatory authority within it's own borders. Then again, I'm just studying this as a part of my accounting 101 class and I could change my mind after I learn a bit more.
very nice video. clear and simple explanations and easy to understand language
Thank you for watching!
I admired your lecture
This really helped with a discussion question and forum for my accounting 101 class. Thank you for the video :-)
That is great to hear! Thanks for watching!
That was a nice video. I don't know if it was your presentation skills or the coffee I just chugged. Either way, thanks so much!
You Are Best Sir...You Explained Very Well...❣️🙏🏻
Good one. Keep it up. Thank you for the explanation .. short and to the point.
Thanks for clear explanation
Very nicely presented! Thank you!
Us gaap vs IFRS which is best for India???
Nice explanation got it in easy way, thanks
You explained in very detailed thank you 👍🏼👍🏼👍🏼
It's helping... supporting others is good job... I'm also trying to teach what I have learned on my channel
Does GAAP also have sections as IAS/ IFRS?
Thank you so much for this detailed video. Can u advise about SYSCOHADA. I need a more detailed explanation on this if you could.
Thank you
You're the boss, keep up the good work friend
thanks for the information please I need some information about the IAS 39 and the IFRS 9
Thank you, I really like your videos. It is awesome all the information. Great Videos!!!
Americans are lucky. Here in the Philippines we take all exams in 1 sitting on top of having 6 subjects. but in america you can stagger in 18months. And we follow IFRS,IAS,COSO, and other american and international standards. The passing rate here is incredibly low not even reaching 20% or above. And i saw some filipinos topping some american certification and licensing exams. Almost every reviewer present examples adapted from either IAA, AICPA, IFRS, etc..
Thank you It gives me a good information
It's a valuable information... Thanks
Thank you for watching!
Hello, Thank you for this great video, like it indeed. One point to raise, though, if I may...........You provided a great example (at 3:14) and mentioned that both the Standards differ on treatment of (cost method of) Inventory for example the LIFO method. You narrated that most of the US companies follow the LIFO method in order to report lesser profits and to reduce the tax-liability. However, the Tax-Balance Sheet is prepared according to the (local) Tax-Laws and not according to the Accounting Standards. That's how the term deferred tax assets and deferred tax liabilities come in to picture. Would you like to help me understand? A detailed and productive reply would be very much appreciated. Many thanks in advance! Greets from Germany!!
very helpful. Thanks
I love your smile. That is why I look forward to your new video. Super cute man!🤣🤣
Thank you for watching!
That was a brilliant explanation!! Thanks!
Thank you for watching!
Is OCBOA used outside the USA?
What do u think If a cpa has degree of IFRS.. What do u think scope?
Thank you very much for this video >>> can you please advice for a professional videos can help us more to understand the IFRS .
This really helped me understand this concept. Thanks for the help.
Thank you for watching!
Explained a lot. Thnx
Thanks for the information. I have a question, if you don't mind.
I am an accounting student in Italy. I usually like to integrate my education by taking online courses and certificates, both to boost my resume, but mainly because I enjoy to learn more at my own pace without having to worry about exams.
The problem is, Italian internet accounting culture is no way near as developed as the one present in the US. There are a lot of nice courses on accounting that are based on GAAP, and so far I wasn't able to find a complete accounting course based on IFRS.
So, my question is: does it make sense for me to learn GAAP regardless? Is it so different that will cause confusion in my academical education?
I would focus on the accounting standards for your geographical area. For Italy, I would study IFRS. The standards change every year, so it is hard enough keeping up just with your local standards. Good luck on your studies. Thank you for watching!
The IFRS official website has resources for students and a emailing list so that you can be notified of updates. I didn't really look into those options, but I saw them on the website.
CAN IT INCREASE YOUR TAX LIABILITY ALSO IN LIFO ?
Thank you for sharing this interesting information.. great video.. I am just wondering, as you said GAAP are based on rules and more detailed but that did not prevent financial crisis (Ex.2008)
That is why IFRS being principle based & not requiring the detail provides a lot of space to do things that should be illegal, but not spelled out as being illegal. Making IFRS scaring in it's application for business.
This is really helpful 👍
Kudos, however I expect to see more of explanation on IFRS
Very good video.
Thanks. Really useful info
Informative! Thank you
thank you Zach
This was amazing. Thanks
Very nice
Thank you for the comparison. I think though that you neglected the efforts made by both organisations to homogenize their accounting standards and which worked for the most part but was put on hold by the US GAAP later on
Thanks for the comment. You are correct, and both organizations continue to work towards the goal of a unified standard. Thanks for watching!
When You are not smiling you look more handsome! Be just natural! And thank you for the video!
I mean he’s handsome either way... but hopefully he doesn’t talk about this stuff in his personal life 😂
Is 48 too late to start studying to be an accountant?
Never
Age should never be a factor in anything you want to do. 👍
You're a Fool to even think theres an age for everything, it's never to late to star any kind of career.
Thank you.
Thank you for this
Thank you, very Insightful.
Thank you for watching!
According to monopoly.wikia.com/wiki/Free_Parking, nothing happens when you land on the space of Free Parking. However in Monopoly City, if you land on the Free Parking space, you get a Rent Dodge Card. Also in computer game versions, you can alter the free space rule.
Thanks for letting me know! I still like the version where you get a bunch of money. Thank you for watching.
What are the sources of US GAAP.. Like for IFRS, its IAS/IFRS+Interpretations...
FASB publishes standards. You can access them on their website, but it costs money.
A great insight 👏
It was a great video I learned a lot thanks
Thank you for watching!
I thought that IFRS was issued by the IASB (international accounting standards board)?
Yes
This is an interesting point of view
Thank you!!!
thank you for the learning vieo
increase my knowledge. thanks you
Yes, it is helpful and informative. Subscription done by me. Thanks
Thank you for this video
Thank you for watching!
I am writing after you made it 3 years back. This is good. But you have covered only two major differences. Rules vs. Principles and LIFO vs.FIFO. If any standard is rules based, it will be like a railway platform where trains will keep coming and going. So the standard will continuously change. That is a problem. Secondly LIFO is a good concept but it has some basic problems. The accounting concept is historical and not on current costs. So it conflicts. Secondly as you have rightly said it will show less profit because cost of consumption will be at current costs but the closing inventory will be in older value. That is a big problem. Tax authority will not accept and the co. will have to make separate accounts for tax. I always advocate for one accounting standard globally.
You are amazing
Great quick summary and even I was able to understand it :-) Much appreciated!
The title alone cured my insomnia
thank u so much for this review. u saved me. thank u!
Thank you for watching!
Very informative. However countries can still laws in place that adopt IFRS to meet their needs.
You make a good point Ella. Thank you for watching!
You make a good point Ella. Thank you for watching!
I'm doing CMA from Bangladesh.
wow......waiting for transition procedures from USGAAP to IFRS