How do International Financial Reporting Standards (IFRS) Differ from GAAP?
While GAAP is used primarily in the United States, IFRS is used internationally. IFRS is designed to bring consistency to accounting language, practices, and statements globally. The main difference between GAAP and IFRS is that IFRS is principles-based, while GAAP is rules-based. This means that IFRS provides a framework, whereas GAAP provides specific rules that must be followed.