US GAAP vs IFRS (Rules vs Principles)

AFM Definition, Scope & Accounting Standards including Ind AS Free JAIIB Capsule 81 views Updated
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AFM · Definition, Scope & Accounting Standards including Ind AS
What is the fundamental difference in the regulatory approach between US GAAP and IFRS?
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US GAAP is considered a rules-based system of accounting, whereas IFRS is designed as a more principles-based system.
IFRS allows the revaluation model for fixed assets, whereas US GAAP strictly uses the historical cost model less accumulated depreciation.
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US GAAP vs IFRS (Rules vs Principles) — Full Text

What is the fundamental difference in the regulatory approach between US GAAP and IFRS?

Answer

US GAAP is considered a rules-based system of accounting, whereas IFRS is designed as a more principles-based system.

Additional notes

IFRS allows the revaluation model for fixed assets, whereas US GAAP strictly uses the historical cost model less accumulated depreciation.

Part of Accounting & Financial Management for Bankers · Definition, Scope & Accounting Standards including Ind AS · Last updated

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