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List and discuss three significant differences between IFRS and U.S. GAAP standards.

List and discuss three significant differences between IFRS and U.S. GAAP standards.

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Answer #1

Following are the differences between IFRS and US GAAP

Point of difference IFRS US GAAP
Based on rule vs principles IFRS tends to be principle based standards which means judgment and interpretation are taken into account while formulating & applying these standards US GAAP tends to be rule based standards which means these standards are formulated and applied based on industry-specific rules and guidelines
Treatement of inventory method LIFO method of inventory valuation is not allowed Apart from other methods, GAAP also allows LIFO method of inventory valuation
Revaluation to fair value if fair value can be measured reliably, IFRS allows revaluation of assets to fair value US GAAP does not allow revaluation of assets to fair value except for marketable se
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