FINANCE

IFRS vs. GAAP

IFRS vs. GAAP

IFRS is more conceptual (i.e., principle-based) than current U.S.GAAP, with little application guidance. U.S. GAAP is great rules-based, with application guidance. Consequently, the use of IFRS requires relatively more reliance on judgment, and less reliance on detailed rules. IFRS requires management to disclose more information about estimated amounts used in the preparation of financial statements than U.S. GAAP does.

Answer 1

There are many investors that gravitate towards operating cash flow and net income and they consider both of them as a best metric regarding the financial health of a company for two reasons. First, cash flow is harder ...