Title: The comparability of international accounting standards and US GAAP: an empirical study of Form 20-F reconciliations

Authors: Jose Luis Ucieda Blanco, Beatriz Garcia Osma

Addresses: Universidad Autonoma de Madrid, Facultad de Economicas, Departamento de Contabilidad, Ctra. de Colmenar km. 15, Madrid 28049, Spain. ' Universidad Autonoma de Madrid, Facultad de Economicas, Departamento de Contabilidad, Ctra. de Colmenar km. 15, Madrid 28049, Spain

Abstract: This paper studies the comparability between US GAAP and International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) by looking at the Form 20-F reconciliation adjustments to US GAAP made by firms using IASs in the period from 1995 to 2001. Adjustments have been classified in categories to identify the characteristics of reported differences: frequency, significance and materiality. Previous research by Street et al. and by Adams et al. found evidence that the differences were both material and significant. We identify the areas that are frequently reconciled and that produce material adjustments. Overall, we conclude that, although material differences still exist, IASs and US GAAP seem to be converging.

Keywords: IASs; US GAAP reconciliation; comparability; Form 20-F.

DOI: 10.1504/IJAAPE.2004.004141

International Journal of Accounting, Auditing and Performance Evaluation, 2004 Vol.1 No.1, pp.5 - 36

Available online: 31 Mar 2004 *

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