Uk Gaap Vs Ifrs. The cash flow statement under ifrs is a mandatory primary financial statement whereas in uk gaap most small companies are exempt under frs 1 from the requirement to prepare a cash flow statement. New uk gaap includes some exemptions from preparing cash flow statements similar to old uk gaap.
The important difference between gaap and ifrs are explained as under. Ifrs is the universal business language followed by the companies while reporting financial statements. Gaap as issued by the financial reporting council are.
Gaap stands for generally accepted accounting principles.
The financial reporting standards under uk and ireland. Under gaap companies may have industry specific rules and guidelines to follow while ifrs has principles that require judgment and interpretation to determine how they are to be applied in a given situation. Ifrs is an abbreviation for international financial reporting standard. Gaap stands for generally accepted accounting principles.
