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We provide insights into the differences between IFRS and US GAAP
Read our monthly report shedding light on the IASB's activities
Most of the world’s more significant capital markets now require IFRS, or some form thereof, for financial statements of public-interest entities. For specific country data, see the IASB’s jurisdictional profiles (https://www.ifrs.org/use-around-the-world/ use-of-ifrs-standards-by-jurisdiction/#profiles).
The remaining major capital markets without an IFRS mandate are:
Many countries require or permit IFRS for statutory financial reporting purposes which impacts multinational companies (e.g., US companies with non-US subsidiaries). IFRS requirements elsewhere in the world also impact US companies through cross-border merger and acquisition activity. In practice, US subsidiaries of foreign parents, non-US subsidiaries of US companies, global buyers of US companies, and US buyers of foreign companies all need to understand IFRS. Accordingly, it is clear from a preparer perspective that being financially bilingual in the US is important.
From an investor perspective, the need to understand IFRS is arguably even greater. US investors keep looking overseas for investment opportunities. Recent estimates suggest that trillions of US capital is invested in foreign securities. The US markets also remain open to non-US companies that prepare their financial statements using IFRS. There are currently approximately 500 non-US filers with an aggregate market capitalization in the trillions of US dollars that use IFRS without reconciliation to US GAAP.
To assist investors and preparers in becoming financially bilingual, we are pleased to provide the following PwC resources.
Partner, National Professional Services Group, PwC US