Which of the following is generally true about the differences between U.S. GAAP and IFRS?
A) U.S. GAAP is more flexible than IFRS.
B) U.S. GAAP tends to be more rules-based and IFRS tend to be principles-based.
C) More professional judgment is required to apply U.S. GAAP than is required for implementing IFRS.
D) In all cases, U.S. GAAP is more detailed than the IFRS.

Question

Quizplus · Accepted Answer

U.S. GAAP tends to be more rules-based and IFRS tend to be principles-based. While both sets of standards have their own unique characteristics, this is a key difference between the two. It is important to note that there are ongoing efforts by standard setters to converge and harmonize the two sets of standards.

Which of the Following Is Generally True About the Differences