The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify different financial reporting methods and create a single accounting standard that can be applied to any statement financial in the world (Byatt). Global standardization of financial reporting will increase readability and improve comparability of globally traded company financial statements, without the need for conversion or translation. There are some key differences between International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP). The growing recognition and acceptance of International Financial Reporting Standards by accounting professionals in the United States will affect how the United States records its financial statements in the future. The main differences between current US GAAP reporting and IFRS reporting include: accounting, inventory valuation, presentation of assets, accrued liabilities, and preparation of the cash flow statement. IFRS has two main revenue standards and four revenue-focused interpretations for revenue recognition, which include sale of goods, sale of services, use of assets and construction contracts (Kaiser). Under U.S. GAAP, revenue cannot be realized or earned, and revenue is only recognized if and only if an exchange transaction occurs. Under US GAAP, a financial entity will record one hundred percent of the transaction of a sale as revenue when selling a given asset... middle of paper ...... perfectly smooth world. Works Cited AICPA. November 2010. November 21, 2011. Byatt, Mark. Financial Accounting Standards Board. November 2009. November 21, 2011. Feeley and Driscoll. "GAAP vs IFRS | Article The evolution of GAAP towards IFRS." Certified accounting and consulting firm | Boston, Massachusetts. Feeley and Driscoll. Internet. October 24, 2011. .Kaiser, James G. PriceWaterHouseCoopers. September 2010. November 21, 2011. Schroeder, Richard G., Myrtle Clark and Jack M. Cathey. Theory and analysis of financial accounting: text and cases. 10th ed. Hoboken, NJ: John Wiley & Sons, 2009. 97. Print.