What are the implications of differences between reporting by IFRS and Essay

What are the implications of differences between report by IFRS and US generally accepted accounting principles reporting by UK Investment banks and US GAAP reporting by US investment banks - Essay mannequinThe report includes an analysis of financial statements of Merrill Lynch and Investec which are in the investment banking industry operating on different sides of the hemisphere.The history of the European investment banking industry dates back to the 1700s when London was the major city for investment banking activity. The United States after it was founded in the late part of the 18th century attracted a tummy of European entrepreneurs and investors which later enjoyed a great surplus of a diversified workforce, which contributed to the creation of the richest nation in the world. The United States had taken the lead in the 20th century to build the best and most advance(a) financial system (SEC) based on Generally Accepted Accounting Principles (GAAP). This gained early ex perience in the emerging industry and obtained the greatest market share of equity selling volume in the world. European nations solidified the investment banking industry at the turn of the 21st century.This study analyses the differences between GAAP and IFRS in investment banking affairs in order to compare and contrast the systems. Moreover, the impact of differing policies on decision making is further explored. The research is broken down into seven parts The problem statement, research objectives, literature review, and grandness of the study, research design/methodology, schedule and conclusion. The current state of the industry as well as the afterlife trends is discussed throughout the paper.The investment banking practices in Europe and the United States do not follow the same procedures and regulations because the GAAP and IFRS frameworks utilised in each continental region differ. This affects company and capital investors worldwide. For example if a USA based company wishes to sell its shares in a European stock exchange such as the