Gaap Vs Ifrs Cheat Sheet. Gaap is used principally in the united states although the security and exchange commission is looking to switch to ifrs by 2015 the system used in the european union and many other countries. Some terms that apply to the financial statements include.
Their value can decrease via depreciation or impairments but it cannot increase. Ifrs rules ban the use of last in first out lifo inventory accounting methods. Balance sheet reports the amounts of assets liabilities and stockholders equity at a specified moment such as midnight of december 31.
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Ifrs rules ban the use of last in first out lifo inventory accounting methods. Extraordinary items are shown below the statement of income in case of gaap. Ifrs rules ban the use of last in first out lifo inventory accounting methods. Development cost is treated as an expense in gaap while in ifrs the cost is capitalised provided the specified conditions are met.
