Difference Between GAAP and IASB

Key Takeaways IFRS is a set of international accounting standards, which state how particular types of transactions and other events should be reported in financial statements. Some accountants consider methodology to be the primary difference between the two systems; GAAP is rules-based and IFRS is principles-based.

1. What is the difference between FASB and IASB?
2. What is the difference between GAAP and IFRS balance sheet?
3. What is the difference and similarity between GAAP and IFRS?
4. What is the difference between IASB and IFRS?
5. Which is better GAAP or IFRS?
6. What is the objective of IASB?
7. What are the major differences between IFRS and GAAP?
8. Does Apple use GAAP or IFRS?
9. What are the 4 principles of GAAP?
10. How many US GAAP standards are there?
11. Who uses GAAP and IFRS?
12. Is GAAP still used in South Africa?

What is the difference between FASB and IASB?

Firstly, the FASB focuses mainly on setting standards and rules for accounting firms and individual certified public accountants practising in the United States. In contrast, the IASB focuses on international accounting standards.

What is the difference between GAAP and IFRS balance sheet?

The Balance Sheet

Under GAAP, current assets are listed first, while a sheet prepared under IFRS begins with non-current assets. ... GAAP calls for accounts to be listed in the order of liquidity—or how quickly and easily they can be converted to cash.

What is the difference and similarity between GAAP and IFRS?

GAAP vs. IFRS. A major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based. With a principle based framework there is the potential for different interpretations of similar transactions, which could lead to extensive disclosures in the financial statements.

What is the difference between IASB and IFRS?

International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) are the same. The difference between them is that IAS represents old accounting standard, such as IAS 17 Leases . While, IFRS represents new accounting standard, such as IFRS 16 Leases.

Which is better GAAP or IFRS?

By being more principles-based, IFRS, arguably, represents and captures the economics of a transaction better than GAAP. Some of the differences between the two accounting frameworks are highlighted below.

What is the objective of IASB?

IASB's objectives

Under the IFRS Foundation Constitution, the objectives of the IASB are: to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles.

What are the major differences between IFRS and GAAP?

Key Differences. The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.

Does Apple use GAAP or IFRS?

Apple Inc., along with other companies like Cisco and other companies show their earnings in non-GAAP (generally accepted accounting principles) figures, as they are believed to reflect their earnings better.

What are the 4 principles of GAAP?

Four Constraints

The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence.

How many US GAAP standards are there?

The Generally Applied Accounting Principles are a set of ten standards, meant to maintain a certain consistency across companies' financial statements.

Who uses GAAP and IFRS?

IFRS is used in more than 110 countries around the world, including the EU and many Asian and South American countries. GAAP, on the other hand, is only used in the United States. Companies that operate in the U.S. and overseas may have more complexities in their accounting.

Is GAAP still used in South Africa?

As part of the changes, the use of South African Statements of Generally Accepted Accounting Practice (SA GAAP) is to be discontinued. ... Under the changes, SA GAAP will cease to apply in respect of financial years commencing on or after 1 December 2012.