It would be much easier to compare financial reports if all companies were following the same standards. It would seem the IFRS would be the best benchmark since many companies operate in the global economy.

What about the company that does not operate internationally? Would you require the locally owned corporation to follow international standards? Would that be burdensome to the small business owner?

GAAP is standards based, while IFRS is principle based. Does the principle based approach allow for more interpretation of the standards?

Answer rating: 100% (QA)

IFRS is characterized as more principles based than US GAAP which is seen as largely rule based However it should be noted that any GAAP is by definit... View the full answer