In this order of ideas: a. The primary financial statements requested under the GAAP and the IFRS are virtually the same

b. In terms of standards used for setting the environment, the IFRS use the standards of the IASB whereas the GAAP use the standards of FASB. The two boards implement similar means of setting the standards

c. The conceptual frameworks for IFRS and GAAP are highly similar

d. The recording process is the same for both accounting standards (double entry recording)

e. Both GAAP and IFRS require a balance sheet and an income statement and the balance sheets and income statements completed under two sets of principles are highly similar

f. The accounting and repotting of cash is virtually the same

g. Both GAAP and IFRS require strong internal control systems in order to comply with the accounting regulations

h. The accounting of receivables is virtually the same

i. In terms of the recording of intangible assets, the mechanisms in both GAAP as well as IFRS require the expense of costs in the research stage

j. Both GAAP and IFRS require economic agents to present their liabilities at the commencement of the balance sheet

k. The accounting of the issuance of stock to the shareholders is also similar

l. In terms of statements of cash flow, "both IFRS and GAAP require that the statement of cash flows have three major sections -- operating, investing and financing -- along with changes in cash and cash equivalents, and both permit use of the indirect or direct method" (Weygandt).

4. Risks of convergence

Just like any other international phenomenon, the convergence of the International Financial Reporting Standards and the Generally Accepted Accounting Principles is both...

One the one hand sit those who argue that the convergence would lead to the formation of a standardized accounting and reporting system which would subsequently reduce the burdens of international and reporting affairs. On the other hand, there are those who argue that the convergence would bring about a series of risks. Among them the following:
The reporting standards developed by the IASB and by the FASB are expected to undergo major changes, as they search for common grounds on the convergence of IFRS and GAAP. This will generate severe challenges for the private companies currently using GAAP.

The educational system is not prepared to welcome the convergence of the two systems and the subjects teaching accounting and reporting, including the software systems, would be overwhelmed by the changes

There is a highly vivid risk that the companies in the United States would not be asked to move to the IFRS system in replacement of the GAAP, but that they would be asked to add the IFRS system to the GAAP. Such a situation would significantly increase the financial and reporting complexities of the American economic agents (Pounder, 2010).