GAAP vs IFRS - Differences and Interpretation | maijson GKB.
IFRS is a set of standards developed by the International Accounting Standards Board (IASB). It merely provides guidelines for harmonizing standards and unifying accounting processes around the world. IFRS is used in the European Union, South America, and parts of Asia and Africa. GAAP is a set of principles that U.S. companies must follow when preparing their annual financial statements. It is an authoritative approach to accounting that ensures that there are no inconsistencies in the financial statements filed by listed companies with the U.S. Securities and Exchange Commission (SEC). This allows investors to intercompare the financial statements of various listed companies. Image Credit: Pixabay Key differences between IFRS vs GAAP Inventory Valuation: Generally, GAAP permits inventory valuation using the L...