Question

Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do you find most interesting?If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?

Answer 1

Answer:-

A major difference between GAAP and IFRS is that

GAAP is rule based

IFRS is principle based.

With the principal based framework there is the potential for different interpretations of similar transactions ,which could lead to extensive disclosures in the financial statements.

Choose :- IFRS

IFRS , arguably, represent and captures the economics of a transaction better than GAAP.