Us Gaap Vs Ifrs. Us gaap classifies the leases as operating direct financing lease and sales type lease the latter two are similar as finance lease in ifrs. Gaap tends to be more rules based while ifrs tends to be more principles based.
Under gaap companies may have industry specific rules and guidelines to follow while ifrs has principles that require judgment and interpretation to determine how they are to be applied in a given situation. Companies that operate in the u s. On the other hand gaap recognizes intangible assets at their current fair market value and no additional future considerations are made.
For us gaap however only the revenue standard is fully effective in annual periods.
Us gaap classifies the leases as operating direct financing lease and sales type lease the latter two are similar as finance lease in ifrs. This disconnect manifests itself in specific details and interpretations. For ifrs standards implementation efforts are complete except for insurance. And overseas may have more complexities in their accounting.
