The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based.
|1||Adoption||Globally adopted||Exclusively used within the United States.|
|2||Methodology||Principle Based||Rule based|
|3||Inventory||the LIFO method for inventory is not allowed.||LIFO method is allowed|
|4||Reversal of Impairment||Allowed to certain extent||No reversal allowed|
|5||Depreciation calculation for Right of Use assets||Depreciation calculated using SLM method||Depreciation is the difference between lease payment minus ROU interest cost.|
|6||Development cost||Capitalized under IFRS||Not allowed to be capitalized|
|7||Fair value Revaluation||Revaluation of the following assets to fair value if fair value can be measured reliably: inventories, property, plant & equipment, intangible assets, and investments in marketable securities. This revaluation may be either an increase or a decrease to the asset’s value.||Revaluation is prohibited except for marketable securities|