IFRS and U.S. GAAP

The U.S.' GAAP and the IFRS serve the same functions. IFRS and U.S. GAAP provide a system of principles of accounting, which is used to draft financial statements. IFRS is used among countries in the developed world while GAAP is used in the United States. While many organizations defining IFRS and U.S. GAAP intend to merge the two standards, they are notable differences. The U.S. Exchange and Securities Commission has established many differences in various areas of application between IFRS and U.S. GAAP. The prime differences stem from the way the two frameworks have been structured, the definition of liabilities and assets, the presentation of financial statements and revenue recognition.

a) What is IFRS? What is U.S. GAAP?

IFRS is defined as the principles-based interpretations, standards, and framework embraced by the International Accounting Standard Board (IASB). Most standards comprising sections of IFRS are historically known as...
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