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accounting was created and become useful tool for operating trade and exchanges. In addition, most important function of accounting is help people control and solve their financial problems.

Over time, accounting regulations were developed and updated in during history of development of world's economy. In 1970s, with trend of international business of nations in the world, International Accounting Standards Committee (IASC) was established in June 1973. The purpose of IASC is to make accounting regulation of nationals in the world comply with basic rules and international standards. The IASC survived for 27 years, until 2001, this organization was renamed as International Accounting Standards Board (IASB).

Beside IASC standards, different countries and regions in the world based on different accounting standards like US GAAP (General Accepted Accounting Principles), UK GAAP etca€|. Example, companies in UK and EU do their accounting and reporting relied on Company Law and EU Regulation on IAS/IFRS and the counterpart in US based on GAAP.

Why need different standards?

Although financial statements of companies based on standards on IAS but there are many other difference in economic and cultural conditions, at first they will based on standards of their national. In countries with a legal system based on common law include England and Wales, USA, Australia, Canada...if a company operates in another countries where accounting standards different with its standards, it should edit and comply with these standards. Example, the USA Company operates on the British market should comply with law and standards of British, beside that this company also comply with US GAAP and IFRS

为什么需要不同的标准?——Differences between US GAAP & IFRS

In today's global business environment, it is likely that U.S. businesses have customers, suppliers, or potential acquisition candidates that prepare their financial statements in accordance with IFRS. To evaluate the financial condition and net income of these companies appropriately, accountants familiar with U.S. GAAP need to understand where U.S. GAAP and IFRS differ and be able to estimate the potential impact of these differences. We will look at current differences between U.S. GAAP and IFRS

一些点的差异:——Some points differences:

Inventory: 2 key differences exist in the area of inventory evaluation. First, IFRS use the LIFO method for evaluate inventory allowed under GAAP. Second, IFRS requires reversal of inventory write-downs under certain conditions, whereas reversals are prohibited under GAAP.

Property, Plant, and Equipment: The most obvious and significant difference is that IFRS allows companies to revalue property, plant, and equipment to fair value while U.S. GAAP relies on historic cost.

Share-based Payments: Differences exist in the treatments of volatility, the measurement date, and the determination of expense when awards are modified.

Example about some differences between U.S GAAP & UK GAAP:

养老金成本：——Pension costs:

Under UK GAAP, pension, liabilities and retirement costs are determined in accordance with the UK Financial Reporting Standard

FRS 17: Retirement Benefits, whereas under US GAAP these costs and liabilities are determined primarily in accordance