The information provided as per GAAP by the financial statement is helpful to the economic decision makers such as investors, creditors, shareholders, etc. It ensures the transparency and consistency of the financial statement. GAAP principles are updated at periodical intervals to meet with current financial requirements. The framework is adopted by publicly traded companies and a maximum number of private companies in the United States. balance sheet, income statement, cash flow statement, etc. It is a set of accounting standards that consist of standard ways and rules for recording and reporting of the financial data i.e. The principles are issued by Financial Accounting Standard Board (FASB). Generally Accepted Accounting Principles or GAAP refers to the standard framework, principles and procedures used by the companies for financial accounting. Permissible, if specified conditions are met.
International Accounting Standard Board (IASB).Ĭapitalized, only if certain conditions are satisfied. IFRS is the universal business language followed by the companies while reporting financial statements.įinancial Accounting Standard Board (FASB). International Financial Reporting StandardĪ set of accounting guidelines and procedures, used by the companies to prepare their financial statements is known as GAAP. There is only a few difference between IFRS and GAAP, which are discussed in this article except in detail.
On the other hand Generally Accepted Accounting Principles (GAAP) is the assemblage of rules, conventions, and procedures, that explains the accepted accounting practice. IFRS or otherwise known as International Financial Reporting Standard implies a principle-based set of standards.