IFRS Replacing GAAP?

GAAP
Generally Accepted Accounting Principles, also known as GAAP, is an ideology used by accountants in the United States as well as other parts of the world. It was one of the most widely used standards until IFRS had come along, and started mixing its ideas with GAAP. GAAP controlled everything in the accounting world from debit and credit all the way to financial statements. The reason GAAP was so successful was because it was so consistent, everybody used the rules set forth by GAAP. These made it easy for the Securities and Exchange Commission, or SEC, to look into a company's records and financial statements and know exactly where to look for what they needed. GAAP has been dwindling out over the years to make room for a new standard created by International Accounting Standards Board called, International Financial Reporting Standard.
IFRS
International Financial Reporting Standard, or IFRS for short, has been becoming the new standard in the field of Accounting. According to Steve Showerman, of the company of Deloitte, in his article IFRS in the United States: Challenges and Opportunities, over 12,000 public companies in over 100 countries have already switched to IFRS. This includes some companies in the European Union, and other countries such as Canada will be switching over later this year. The United States is slowly moving in the direction of IFRS but that still seems to be off in the long term. The new movement from GAAP to IFRS has caused financial reporting to differ between countries and companies with offices in other countries can wind up paying the price.
What's The Difference?
Generally Accepted Accounting Principles and International Financial Reporting Standard differ in a few ways, such as their financial statements, when taking the CPA exam, test takers will need to recognize and need to perform the different financial statements. Another major difference is in the way that cost is allocated, with GAAP all assets are allocated when doing so to cost. But with IFRS the allocation waits all the way until there is a cost for the product before it breaks down the cost. With International Financial Reporting Standards there is only First-in First-out, weighted average, and specific identification for inventory purposes. This is different from Generally Accepted Accounting Principles because it uses all of these, plus it uses Last-in First-out also, for inventory. IFRS uses a one step method for impairment write-downs, compared to GAAP which uses a two-step method. This makes write-downs more common with IFRS, because it is only one step rather than two.