There are still differences between the two that can tend to cause confusion. One key difference is their conceptual views. The GAAP is very detailed and known as “principle-based” and focuses on literal meaning. The IFRS, however, is more “rule-based.” They operate in a way that focuses on patterns. Another difference between the two is the methods in which they operate. The U.S. GAAP uses the LIFO (last in first out) method on a regular basis whereas the IFRS doesn’t even allow the use of LIFO. The two will most likely have to meet in the middle on this issue. The U.S. GAAP can’t simply get rid of the LIFO method because nearly all U.S. businesses would have to revalue their inventory. One last difference between IFRS and GAAP is their recognition of revenue. GAAP is far more specific because it requires a specific amount of revenue to be reported whereas the IFRS allows unconfirmed revenue to be reported
There are still differences between the two that can tend to cause confusion. One key difference is their conceptual views. The GAAP is very detailed and known as “principle-based” and focuses on literal meaning. The IFRS, however, is more “rule-based.” They operate in a way that focuses on patterns. Another difference between the two is the methods in which they operate. The U.S. GAAP uses the LIFO (last in first out) method on a regular basis whereas the IFRS doesn’t even allow the use of LIFO. The two will most likely have to meet in the middle on this issue. The U.S. GAAP can’t simply get rid of the LIFO method because nearly all U.S. businesses would have to revalue their inventory. One last difference between IFRS and GAAP is their recognition of revenue. GAAP is far more specific because it requires a specific amount of revenue to be reported whereas the IFRS allows unconfirmed revenue to be reported