Us Gaap Vs Ifrs. Classification criteria are very similar although there are differences in their assessment. Our us gaap versus ifrs the basics publication which provides an overview by accounting area of the similarities and differences between us gaap and ifrs has been updated.
Us gaap classifies the leases as operating direct financing lease and sales type lease the latter two are similar as finance lease in ifrs. Gaap tends to be more rules based while ifrs tends to be more principles based. Under gaap companies may have industry specific rules and guidelines to follow while ifrs has principles that require judgment and interpretation to determine how they are to be applied in a given situation.
Our us gaap versus ifrs the basics publication which provides an overview by accounting area of the similarities and differences between us gaap and ifrs has been updated.
On the other hand gaap recognizes intangible assets at their current fair market value and no additional future considerations are made. The primary difference between the two systems is that gaap is rules based and ifrs is principles based. Entities that provide financial statement information to a parent entity that reports under ifrs standards or foreign entities that report under ifrs standards and consolidate subsidiaries or other operations that report under u s. Our us gaap versus ifrs the basics publication which provides an overview by accounting area of the similarities and differences between us gaap and ifrs has been updated.
