![]() ![]() One of the major differences that you can find with IFRS and GAAP is the methodology of accounting followed by them. As such, if you continue with GAAP, then it may not augur well for your business internationally. GAAP has an entirely different set of rules for accounting than that of IFRS which is applicable in most part of the world. GAAP, on the other hand, is an accounting method that is solely applicable within the United States. However, if your business has a presence outside the United States, then you must know that IFRS is the globally accepted accounting standard and more than hundred countries have adopted it or are in the process of its full-fledged implementation. If your business is entirely concentrated in the United States, then you may afford to ignore the dissimilarities between IFRS and GAAP. Here are a few of the differences between IFRS and GAAP accounting that you should be aware of: If you are either a business owner with significant global footprints, then it is very important for you to understand the differences between these two accounting methods in order to be successful globally. However, approximately 90 countries have been reported to be fully consistent with IFRS guidelines. ![]() IFRS has gained some traction is the last couple of years which is vindicated by the fact that approximately 120 nations of the world have adopted IFRS as the standard for accounting. IFRS is the accounting method having universal applicability while GAAP is the set of guidelines that are used in the United States. Of late, International Financial Reporting Standards (IFRS) Vs Generally Accepted Accounting Principles (GAAP) has been one of the most debatable topics of discussion in the world of accounting. ![]()
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