What are the main differences between GAAP and IFRS?

What are the main differences between GAAP and IFRS?

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.

What is the difference between GAAP and IFRS balance sheet?

Balance Sheet US GAAP lists assets in decreasing order of liquidity (i.e. current assets before non-current assets), whereas IFRS reports assets in increasing order of liquidity (i.e. non-current assets before current assets).

What does GAAP say about inventory?

Under US GAAP, inventories are measured at the lower of cost, market value, or net realisable value depending upon the inventory method used. Market value is defined as current replacement cost subject to an upper limit of net realizable value and a lower limit of net realizable value less a normal profit margin.

What is the difference between GAAP and IFRS Mcq?

IFRS is issued by the International Accounting Standards Board (IASB)….Difference between GAAP and IFRS.

What is the difference between GAAP and non GAAP?

GAAP is the U.S. financial reporting standard for public companies, whereas non-GAAP is not. Unlike GAAP, non-GAAP figures do not include non-recurring or non-cash expenses. Also, because there are no standards under non-GAAP, companies may use different methods for financial reporting.

How do IFRS and US GAAP differ in their approach to allowing reversals of inventory write downs?

Write Down Reversals GAAP requires that the value of an inventory asset or fixed asset be written down to its market value; GAAP also specifies that the amount of the write-down cannot be reversed if the market value of the asset subsequently increases. Under IFRS, the write-down can be reversed.