IAS/IFRS/GAAP Guides

FRS 102, also known as the Financial Reporting Standard applicable in the UK and Republic of Ireland, underwent significant amendments that businesses need to be aware of. These amendments aim to keep FRS 102 aligned with IFRS and other global reporting standards, simplifying financial reporting for SMEs while ensuring compliance with international practices. Major Amendments by FRS 102: Revenue Recognition (Section 23) Amendment: Aligns with IFRS 15, focusing on the transfer of control rather than the transfer of risks and rewards. Impact: Businesses may need to adjust how they recognize revenue, particularly in long-term contracts and service arrangements, potentially leading to earlier or later revenue recognition. Leases (Section 20) Amendment: Aligns with IFR...

In the world of accounting, two main standards guide financial reporting: the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) of the United States. Both frameworks aim to ensure consistency, reliability, and transparency in financial reporting, but they differ in several key areas. This detailed article explores the main differences in accounting treatments under IFRS and US GAAP, highlighting the most significant distinctions that impact businesses globally. Overview of IFRS and US GAAP IFRS is developed and maintained by the International Accounting Standards Board (IASB). It is used by more than 140 countries, including the European Union, Canada, and many parts of Asia and South America. IFRS is designed to bring consistency ...