A COMPARATIVE ANALYSIS OF GAAP (USA) AND IFRS (EUROPE): EVALUATING THE NEED GLOBAL ACCOUNTING STANDARDS (GAS)

Authors

  • MD. Miraj Hossen Khan Department of accounting, University of Dhaka

Keywords:

GAAP, IFRS, Europe, USA, GAS

Abstract

This study conducts a comparative evaluation of the Generally Accepted Accounting Principles (GAAP) in the United States and the International Financial Reporting Standards (IFRS) used in Europe between 2020 and 2023. The research examines key aspects such as implementation efficiency, financial disclosure transparency, fair value assessment, tax reporting, cybersecurity regulations, digital transformation, AI integration, audit quality, ESG adoption, political transparency, and GDP growth rates. The findings suggest that IFRS demonstrates greater uniformity and transparency, particularly in digitalization and ESG adoption, while GAAP remains stronger in audit reliability and regulatory enforcement.

The study concludes that while IFRS is globally recognized for its flexibility, certain areas—such as cybersecurity disclosures and audit regulations— require improvements to align with GAAP’s structured framework. By integrating selected elements from both standards, a hybrid model could enhance the effectiveness of international financial reporting. The paper proposes that a Global Accounting Standard (GAS), combining the strengths of GAAP’s rule-based approach and IFRS’s principles-based flexibility, could serve as an optimal solution for addressing current limitations in global financial regulation.

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References

Securities and Exchange Commission (SEC). (2023). Annual report on implementation rates and disclosures (2020-2023). U.S. Government Printing Office.

World Bank. (2023). Gross Domestic Product (GDP) of the United States and Europe (2020-2023). Retrieved from https://www.worldbank.org/gdp

Smith, J. (2023, May 5). Understanding IFRS and GAAP. Finance Today. Retrieved from www.financetoday.com/ifrs-gaap

Financial Accounting Standards Board (FASB). (n.d.). Generally Accepted Accounting Principles (GAAP) Retrieved from https://www.fasb.org/

European Securities and Markets Authority (ESMA). (n.d.). Regulatory framework for IFRS in Europe. Retrieved from https://www.esma.europa.eu/

International Accounting Standards Board (IASB). (2024). International Financial Reporting Standards (IFRS). Retrieved from https://examples.integratedreporting.ifrs.org/

Investopedia. (n.d.). GAAP vs. IFRS: What's the Difference? Retrieved from https://www.investopedia.com/ask/answers/011315/what-difference-between-gaap-and-ifrs.asp

Author(s). (2023). Digitalization and AI: Trends in the USA and Europe (2020-2023). Journal of Accounting Technology, 12(4), 45-67.

Author(s). (2023). Fair value development rate in the context of GAAP and IFRS (2020-2023). International Accounting Review, 15(2), 78-92.

World Bank GDP Data. (2020-2023). Retrieved from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD

Miraj Hossen khan. (2025). A comparative analysis of GAAP (USA) and IFRS (Europe): Evaluating the need for global accounting standards (GAS). Unpublished manuscript.

Journal of Accounting Technology. (2023). Digitalization and AI: Trends in the USA and Europe (2020- 2023). Journal of accounting technology, 12(4),45-67

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Published

2025-05-30

How to Cite

Khan, M. H. (2025). A COMPARATIVE ANALYSIS OF GAAP (USA) AND IFRS (EUROPE): EVALUATING THE NEED GLOBAL ACCOUNTING STANDARDS (GAS). The Journal of Contemporary Issues in Business and Government, 31(2), 23–35. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2867

Issue

Vol. 31 No. 2 (2025): The Journal of Contemporary Issues in Business and Government

Section

Articles

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Copyright (c) 2025 MD. Miraj Hossen Khan

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