ABSTRACT
Although there have been projects to harmonise International Financial Reporting Standards (IFRS Standards) and US GAAP (generally accepted accounting principles), differences remain on matters of detail, which may limit comparability across financial statements based on these accounting systems. The differences remain because of deeply held, but differing, views about the nature and purpose of accounting. Six issues are discussed and compared in this chapter, namely, the application of fair value definitions, the treatment of investment property, revenue recognition, research and development expenditure, operating and finance leases, and alternative performance measures (non-GAAP reporting). Examples of academic research in each issue are related to the controversial aspects.
