What are the key differences between GAAP and IFRS?

What are the key differences between GAAP and IFRS?

GAAP (Generally Accepted Accounting Principles) is primarily used in the U.S., while IFRS (International Financial Reporting Standards) is used internationally. Key differences include revenue recognition, measurement of assets, and the treatment of leases.

Can you provide some resources for learning more about GAAP and IFRS?

Sure! You can check out the Financial Accounting Standards Board (FASB) for GAAP resources and the International Accounting Standards Board (IASB) for IFRS materials. Additionally, there are many online courses available on platforms like Coursera and edX.

Are there any specific books you recommend for understanding these standards?

Yes, "Financial Accounting Standards: A Comprehensive Guide" is great for GAAP, and "IFRS for Dummies" is a good starting point for IFRS.

How do these standards affect international business?

The choice between GAAP and IFRS can impact financial reporting, compliance, and investment decisions for international businesses, as they may need to reconcile their financial statements to meet different regulatory requirements.