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IFRS
(International Financial Reporting Standards)
IFRS (International Financial Reporting Standards) are accounting rules developed by the International Accounting Standards Board (IASB) for global consistency. Used in over 140 jurisdictions, IFRS differs from U.S. GAAP in areas like revenue recognition and lease accounting.
IFRS emphasizes principles over rules, requiring more professional judgment. Key differences include: no LIFO inventory method under IFRS, different treatment of R&D costs, and single-step impairment testing. The SEC has debated IFRS adoption for U.S. companies since 2008. Multinationals like ADR issuers often reconcile IFRS and GAAP financials. IFRS adoption aims to improve comparability for global investors.
IFRS emphasizes principles over rules, requiring more professional judgment. Key differences include: no LIFO inventory method under IFRS, different treatment of R&D costs, and single-step impairment testing. The SEC has debated IFRS adoption for U.S. companies since 2008. Multinationals like ADR issuers often reconcile IFRS and GAAP financials. IFRS adoption aims to improve comparability for global investors.