how-does-the-principles-based-approach-of-ifrs-differ-from-the-rules-based-appro

Question

How does the principles-based approach of IFRS differ from the rules-based approach of GAAP?

Accepted Answer

IFRS allows more judgment and flexibility, while GAAP provides specific rules and thresholds.

Answer

GAAP allows more judgment and flexibility, while IFRS provides specific rules and thresholds.

Answer

Both IFRS and GAAP are principles-based.

Answer

IFRS is more strict and detailed than GAAP.