63 ABSTRACT The Financial Accounting Standard Board (FASB) and the International Accounting Standard Board (IASB) have been working jointly toward the convergence of the U.S. generally accepted accounting principles (GAAP) and the international financial reporting standards (IFRS). However, several arguments still exist as to whether or not U.S. companies should adopt or converge with IFRS. This qualitative study identified the differences noted between rules-based and principles-based accounting, and discussed the impact of these accounting standards on financial reporting. Additionally, several resources were analyzed to understand the path to convergence and the future state of IFRS. The examination of information regarding the transition towards one single set of accounting standards led to the development of two alternate conclusions. Although research allows for the belief that convergence with IFRS is imminent, the fact remains that FASB and IASB will need to work diligently in order to resolve the differences between the two sets of accounting standards. Keywords: GAAP, IFRS, FASB, IASB, Adoption, Convergence, Rules-based, Principles-based, Accounting Standards, Financial Reporting Introduction According to Miller and Becker (2010), “Countries have long had their own version of GAAP, because; GAAP development is influenced by local culture, educational systems, religious beliefs, and other country-specific factors” (p. 64). Research also indicated that although International Financial Reporting Standards (IFRS) are used as the method of financial reporting by over 15,000 companies outside of the United States, the debate over whether the public companies based within the United States should adopt or converge with IFRS remains. Callaghan and Treacy (2007) agreed that significant strides have been made towards understanding the differences between U.S. GAAP and IFRS but, there seems to be hesitation within U.S. public companies to migrate towards fully adopting a principles-based method of accounting. The researchers will use an exploratory qualitative research method that compares rules-based and principles-based accounting standards. DOI: 10.19085/journal.sijbpg030501 The Convergence of U.S. GAAP with IFRS: A Comparative Analysis of Principles- based and Rules-based Accounting Standards Dr. Oris Guillaume (MA, JD, DBA) Post-Doctoral in Accountancy, Professor of Management, Chair Graduate Business Programs Shorter University, USA. Dr. Denel Pierre (DBA, MBA) Adjunct Professor of Finance and Accounting, Argosy University, USA. © Scholedge International Journal of Business Policy & Governance (ISSN 2394-3351), Vol.03, Issue 05 (2016) pg63-72. Published by: Scholedge R&D Center [www.theSCHOLEDGE.org] [Email: editorial@thescholedge.org]