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In respect to inventory accounting, differences between U.S. GAAP and IFRS continue to exist. What are...

In respect to inventory accounting, differences between U.S. GAAP and IFRS continue to exist. What are the differences and are they simply a difference between principles-based and rules-based financial reporting standards?

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GAAP and IFRS both are accounting standards.GAAP is an oldest version of accounting standard and in 2001 GAAP is replaced by IFRS.can say that IFRS is the updated version of GAAP. in the early periods,GAAP is applied in America only,But now IFRS is spread in almost 120 countries in the world including EU also.

GAAP is a rule based and IFRS is principal based.GAAP allows LIFO method for inventory valuation,But IFRS baned the application of LIFO.

The performance elements of GAAP include assets liabilities gain or loss comprehensive income etc.but in IFRS it include assets liabilities gain or loss . inventory reversal is prohibited under GAAP but in IFRS it is permitted under certain conditions.

These all are the differences IFRS and GAAP.from the above it shows that the differences is not only from rule based and principal based nature.

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