Us Gaap Vs Ifrs Summary. For ifrs standards implementation efforts are complete except for insurance. Each comparison in the series covers a specific topic and highlights the significant differences between u s.
For ifrs standards implementation efforts are complete except for insurance. 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. For us gaap however only the revenue standard is fully effective in annual periods.
The us gaap allows a high risk and reward model while ifrs provides a platform for the search of a singular model of financial reporting.
The primary difference between the two systems is that gaap is rules based and ifrs is principles based. The international financial reporting standards ifrs the accounting standard used in more than 144 countries has some key differences from the united states generally accepted accounting. The us gaap allows a high risk and reward model while ifrs provides a platform for the search of a singular model of financial reporting. Ifrs is keener on the model is used to review the facts while the gaap focuses more on the kind of narrative that is used.
