The key differences between IFRS and U.S. GAAP?

The International financial reporting standard (IFRS) - this accounting standard used in more than 111 countries has some key differences from the Generally Accepted accounting principles (GAAP).At the conceptually level, IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based". By being more "principles based", IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP. Some of differences between the two accounting frameworks are as below

Intangibles
the treatment of acquired intangible assets helps illustrate why IFRS is considered more "principles based." Acquired intangible assets under U.S. GAAP are recognized at fair value, while under IFRS, it is only recognized if the asset will have a future economic benefit and has measured reliability. Intangible assets are things like Research & development and advertising costs.

Write Downs
Under IFRS, if inventory is written down, the write down can be reversed in future periods if specific criteria are met. But Under U.S. GAAP, once inventory has been written down, any reversal is prohibited.

Inventory Costs
Under IFRS, the last-in first-out (LIFO) method for accounting for inventory costs is not allowed. Under U.S. GAAP, either LIFO or FIFO inventory estimates can be used. Considering a single method of inventory costing could lead to enhanced comparability between countries, and remove the need for analysts to adjust LIFO inventories in their comparison analysis.

There are some more key difference are there but we will cover that in next session.