IFRS vs. GAAP: Comparing and Contrasting Financial Statement Requirements

This course will review significant differences affecting a broad range of financial statement areas, comparing, and contrasting the requirements in accordance with generally accepted accounting principles (GAAP) versus International Financial Reporting Standards (IFRS) for accountants preparing financial information under either or both standards.

Over 144 jurisdictions require the use IFRS for all or most companies, while entities in the United States predominantly apply GAAP. There are similarities and substantial differences between these reporting methods. Recent standard setting has often sought to align the two bases of accounting, but there are differences including in the new lease standard, as well as the differences that have existed for a while related to inventory, fixed assets and stock-based compensation to name just a few. These differences can substantially alter the financial results reported.

For those adopting IFRS for the first time, IFRS 1, First-Time Adoption of International Financial Reporting Standards, provides guidelines for preparing a company's first IFRS-based financial statements. This challenging process requires applying IFRS principles retroactively, with few exceptions. There are many unique disclosure requirements for the initial IFRS statements as well.

Preparing compliant financial statements under two sets of guidelines is a complex process for practitioners who thoroughly understand IFRS and GAAP reporting requirements. U.S. multinational investors, cross-border companies, and anyone wanting to be able to interpret non-U.S. financial statements need to be able to compare these financial statements as well.

Listen as our panel of international reporting experts identifies key balance sheet, income statement, and disclosure differences in U.S. GAAP and IFRS to enable CPAs to comply with these standards and allow multinational investors to better analyze financial statements.