US GAAP are still relevant in Switzerland despite the growing importance of International Financial Reporting Standards (IFRSs).
US GAAP are still relevant in Switzerland despite the growing importance of IFRS.
The United States Generally Accepted Accounting Principles (US GAAP) were intended to improve the information available to current and potential investors. These principles are important for European companies listed in the US that have decided to prepare their consolidated financial statements in accordance with US GAAP. The complex regulations set up by the US supervisory authority, the Securities and Exchange Commission (SEC), also apply to companies that have adopted the International Financial Reporting Standards (IFRSs) and are listed in the US. Subsidiaries of US corporations are subject to US GAAP, as well. Coping with the requirements set forth in the US regulations calls for detailed, up-to-date knowledge. Given the goal of convergence between the two systems, US GAAP exert a strong influence on the continued development of IFRSs.