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 most important thing is to delivering the infallible information in an efficient and timely manner. It is because app atomic number 18nt that IASB proposals lead have a great impact on US GAAP therefore forcing accountants to seek modifications to their activities.Upcoming changes to U.S GAAP intend to have significant effect on gross perception, leases and financial instruments. Even though the measure has not been do final, the three major changes to U.S. GAAP are significant and therefore understanding how they affect ones profession and entities operations (Gallagher, 2010). When revenue recognition, financial instruments and leases standards are finalized, they will definitely become part of U.S. GAAP and affect both private, not for profit and public entities that were previously using the U.S GAAP standards. The revenue recognition proposal w ill have a great influence on the way revenues will be recognized and disclosed, transactions will be accounted for, and in conclusion the way contractual arrangements will be made as a way of improving compar mightiness across companies, industries and capital 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 guidance associated with U.S GAAP (Munter, 2011). The resulting standard will be a principle based approach that will determine revenue recognition because of its ability to affect every entitys every day accounting and transactions. Standardized revenue recognition standard for both annual and interim reporting will be applied retrospectively including any practical expedients discussed. However, transition to the new revenue recognition standard as well as the potential impacts on financial statements and introduction of new systems may take some time due to challenges of familiarity