Daily Archives: August 31, 2021

Financial reporting principles make it possible to compare the financial health and performance of different companies. This is particularly important for investors and creditors who need to make informed decisions about where to allocate resources. Unlike rule-based GAAP, IFRS is primarily a principles-based system, meaning it sets broad rules along with specific guidance. The principles …

Continue reading “IFRS vs U.S. GAAP: What’s the Difference?”

Even revaluation of assets is prohibited under GAAP unless there are marketable securities (assets that can easily be liquified). Another thing prohibited by the GAAP is a reversal of impairment losses incurred should an asset be revalued. For long-lived assets comparing ifrs to gaap like buildings and equipment, IFRS values them at their original price …

Continue reading “Revenue accounting: IFRS® Standards vs US GAAP”