Exploring the Pros and Cons of USA - Gaap and Ifrs Essay
S. GAAP and IFRS lie in their underlying philosophies. US GAAP is known for its rules-based approach, while IFRS uses a principles-based methodology. This distinction has far-reaching implications as it determines the degree of adaptability and professional judgment that each system allows. Under the strict US GAAP, GAAP rules in the US, while IFRS rules countries around the world. Although GAAP versus IFRS both strive for transparency and reliability, they approach things differently, like two chefs with unique signature dishes. 2. Rules vs. Principles: The Flavors of Accounting. GAAP is the rules-based chief, closely, The Convergence of US GAAP with IFRS: A Comparative Analysis of Principles-based and Rules-based Accounting Standards. Scholedge International Journal of Business Policy and Governance, 3 5, 63-72.