Gaap Vs Ifrs. Gaap tends to be more rules based while ifrs tends to be more principles based. Gaap is considered a more rules based system of accounting while ifrs is more principles based.
For us gaap however only the revenue standard is fully effective in annual periods. Gaap us generally accepted accounting principles is the accounting standard used in the us while ifrs international financial reporting standards is the accounting standard used in over 110 countries around the world. The treatment of intangible assets such as research and goodwill also feature when differentiating between ifrs vs us gaap standards.
In such a way the asset can be assessed and given a monetary value.
On the other hand gaap recognizes intangible assets at their current fair market value and no additional future considerations are made. This disconnect manifests itself in specific details and interpretations. Gaap is considered a more rules based system of accounting while ifrs is more principles based. For us gaap however only the revenue standard is fully effective in annual periods.
