How Do IFRS and U.S. GAAP Differ?
From a big picture perspective, IFRS and U.S. GAAP appear to be similar financial reporting models. Both standards require presentation of similar financial statements (for example, a balance sheet, statement of operations, and statement of cash flows), and the accounting requirements for complex standards like business acquisitions are based on common principles. However, there are many significant differences between the two sets of standards when you look at the specific technical accounting requirements under each. By some measures, there are currently more than 400 differences between IFRS and U.S. GAAP. The differences between IFRS and U.S. GAAP are varied and aren’t limited to one particular industry or type of transaction. For example, one of the most significant differences relates to the accounting for product development costs, which are capitalized under IFRS and expensed as incurred under U.S. GAAP. Other differences are simply related to the timing of when transactions su
