Please write a 250 word response to the below discussion. Please provide 2 scholarly sources.

US GAAP is a form of standard reporting of long-term asssets used by the US. It stands for Generally Accepted Accounting Principles. These, similar to IFRS, are rules procedures that must be followed by all companies as they compile financial statements. This system provides a minimum standard to simplify the ability to analyze and compare data for companys financial statements. The two forms of standard reporting of long-term assets are US GAAP and IFRS. US GAAP is considered to be more of a rules based system whereas IFRS is considered to be a principles-based system. Under IFRS, market is always defined as net realizable value, which, for inventories, is current market value (Saint Leo University, 2014). There are three main areas in which the two differ. These areas are with intangible assets, inventory costs, and write-downs. The way that intangible assets are assessed differs because with GAAP these assets are recognized at fair value. Under IFRS the asset is only recognized if the asset will gave a future economic benefit and has measured reliability (Nguyen, 2016). When it comes to the inventory costs there is a major difference between the two reporting systems. With US GAAP you are able to use either LIFO or FIFO for inventory estimates. This differs from IFRS where FIFO is the only accepted inventory estimate. The use of one primary inventory cost system will eliminate the necessity for analyst who adjust the differences between LIFO and FIFO (AICPA). The final major difference is in the write-downs. When inventory is written down in GAAP there is no reversal at all under no circumstances. With IFRS there are certain criteria that can be met to make that reversal. If there was a convergence of the two principles, I believe that IFRS would be the easiest to switch to. There are more countries that are IFRS standard than the single country the GAAP affects. This would make the transition simpler. I also think that the idea of using only FIFO versus the option of FIFO or LIFO would make a better standard for all financial reports to be more easily compared.