The globalization of business has led to 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 various financial reporting methods and create a single accounting principle that can be applied to any financial statement worldwide (Byatt) . Global standardization of financial reporting will increase the readability and improve the comparability of financial statements of listed companies globally, without the need for conversion or translation. There are some key differences between International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP). The growing recognition and acceptance of International Financial Reporting Standards by accounting professionals in the United States will influence how the United States records financial statements in the future. Key differences between current US GAAP reporting and IFRS reporting include: recognition, inventory measurement, balance sheet reporting, accrued expenses, and cash flow statement preparation. IFRS has two primary revenue standards and four revenue-focused interpretations for revenue recognition that include sales of goods, sales of services, use of goods and construction contracts (Kaiser). Under US GAAP, revenue can only be realized or earned, and revenue is recognized only if and only if an exchange transaction takes place. Under US GAAP, a financial entity will record 100% of a sales transaction as revenue upon sale of a given asset… medium of paper… perfectly smooth world. Works Cited AICPA. November 2010. November 21, 2011.Byatt, Mark. Financial Accounting Standards Committee. November 2009. November 21, 2011 .Feeley and Driscoll. "GAAP vs IFRS | Article The evolution of IFRS from GAAP." Certified public accounting and consulting firm | Boston, Massachusetts. Feeley and Driscoll. Network. October 24, 2011. Kaiser, James G. PriceWaterHouseCoopers. September 2010. November 21, 2011. Schroeder, Richard G., Myrtle Clark, and Jack M. Cathey. Financial accounting theory and analysis: text and cases. 10th ed. Hoboken, NJ: John Wiley & Sons, 2009. 97. Print.