TECHNICAL ASPECTS COMPARING THE IFRS AND THE US GAAP CONCERNING FINANCIAL INVESTMENT COMPANIES

Abstract

In the context of current interconnected capital markets, all the investors, regardless their country of origin would be provided with the improvement of the quality and comparability of financial information due to the high quality of some common standards of financial reporting. In order to achieve this, the two bodies, the FASB and the IASB, are working together to reduce the differences between the IFRS and the US GAAP. However, there are some problems observed by the US SIF managers, which fall under their area of work. They are divided in three groups: The lack of essential information expected by the American investors. For example, the IFRS does not impose the presentation of the investments made by an investment company; Different assessment bases for the financial actives and debts in the IFRS, which influences the main indicators for the investors; Presenting relevant information regarding the risks taken by investment funds and the analysis of proneness to these risks.

Keywords

• capital markets
• investors
• financial information
• international financial reporting standards