how does ifrs differ from gaap 
the two systems have the same goal clarity and honesty in financial reporting by publicly traded companies ifrs was designed as a standards based approach that could be used internationally gaap is a rules based system used primarily in the u s although most of the world uses ifrs standards it is still not part of the u s financial accounting world the sec continues to review switching to the ifrs but has yet to do so several methodological differences exist between the two systems for instance gaap allows a company to use either of two inventory cost methods first in first out fifo or last in first out lifo lifo however is banned under ifrs 