Advantages and disadvantages of the FairTax Act Term Paper - 1

Advantages and disadvantages of the FairTax Act - Term Paper Exampleing the proposals into the U.S accounting framework because the virtually important thing is to delivering the necessary information in an efficient and cadencely manner. It is therefore apparent that IASB proposals depart have a great impact on US GAAP therefore forcing accountants to seek modifications to their activities.approaching changes to U.S GAAP intend to have significant effect on revenue recognition, leases and financial instruments. Even though the standard has not been made final, the three major changes to U.S. GAAP are significant and therefore judgment how they affect ones profession and entities operations (Gallagher, 2010). When revenue recognition, financial instruments and leases standards are finalized, they will unquestionably become part of U.S. GAAP and affect both private, not for profit and public entities that were previously apply the U.S GAAP standards. The revenue recognition prop osal will have a great influence on the way revenues will be recognized and disclosed, transactions will be accounted for, and finally the way contractual arrangements will be made as a way of improving comparability across companies, industries and capital letter markets.A single standard for revenue recognition that converges U.S GAAP and IFRS applicable across all industries and in all transactions is vital in eliminating the transaction and industry specific revenue recognition way associated with U.S GAAP (Munter, 2011). The resulting standard will be a principle based approach that will incur revenue recognition because of its ability to affect every entitys every day accounting and transactions. exchangeable revenue recognition standard for both annual and interim reporting will be utilize retrospectively including any practical expedients discussed. However, transition to the new revenue recognition standard as wellhead as the potential impacts on financial statements and introduction of new systems may take some time due to challenges of familiarity