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Comparison Chart

BASIS FOR
GAAP IFRS
COMPARISON

Acronym Generally Accepted International Financial

Accounting Principles Reporting Standard

Meaning A set of accounting guidelines IFRS is the universal

and procedures, used by the business language followed
companies to prepare their by the companies while
financial statements is known reporting financial
as GAAP. statements.

Developed by Financial Accounting International Accounting

Standard Board (FASB). Standard Board (IASB).

Based on Rules Principles

Inventory FIFO, LIFO and Weighted FIFO and Weighted

valuation Average Method. Average Method.

Extraordinary Shown below. Not segregated in the

items income statement.

Development cost Treated as an expense Capitalized, only if certain

conditions are satisfied.

Reversal of Prohibited Permissible, if specified

Inventory conditions are met.