IFRS is considered a principles-based system, while U.S. GAAP is considered a rules-based system.

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IFRS (International Financial Reporting Standards) is considered a principles-based system, meaning it allows for some flexibility in accounting treatment based on the specific circumstances of a transaction. U.S. GAAP (Generally Accepted Accounting Principles), on the other hand, is considered a more rules-based system, with specific guidelines and regulations dictating how certain transactions should be accounted for.

IFRS Is Considered a Principles-Based System, While U