What types of differences can cause issues between International Financial Reporting Standards and U.S. GAAP?
A) Measurement
B) Alternatives available
C) Disclosure
D) All of the above may be different between IFRS and U.S. GAAP.

Question

Quizplus · Accepted Answer

All of the above factors (measurement, alternatives available and disclosure) may differ between IFRS and U.S. GAAP, causing discrepancies between the financial reports prepared under both standards. For instance, IFRS provides for a principles-based approach to accounting, while GAAP adopts a rules-based approach, leading to differences in measuring assets and liabilities, categorizing expenses, and recognizing revenue. Similarly, IFRS allows for more alternatives in accounting for certain transactions, like leases, while GAAP has more prescriptive rules. Lastly, disclosures required by both standards may also vary, leading to presentation differences in financial statements.

What Types of Differences Can Cause Issues Between International Financial