How do I transition from GAAP to IFRS?

How do I transition from GAAP to IFRS?

Transitioning from GAAP to IFRS involves several steps, including understanding the key differences, assessing your current financial reporting, and developing a transition plan. Would you like a detailed guide?

Yes, please provide a detailed guide.

First, familiarize yourself with the IFRS standards. Next, conduct a gap analysis to identify differences in recognition, measurement, and disclosure. Then, prepare a transition plan that includes timelines and training for your team.

What are the main differences between GAAP and IFRS?

Some key differences include revenue recognition, lease accounting, and the treatment of financial instruments. Would you like to explore any specific area further?

Yes, can you explain revenue recognition differences?

Under GAAP, revenue is recognized when it is earned and realizable, while IFRS uses a principle-based approach that focuses on the transfer of control. This can lead to differences in timing and amount of revenue recognized.