Embracing rapid change
In the 21st century a successful company is one that adapts rapidly to innovation and change. Technological advances have had an enormous impact on businesses and their customers in recent years, with the shift to cloud computing and the growing capabilities of artificial intelligence opening vast new opportunities for commerce.
At the same time, companies are coming to terms with increased global uncertainty – for example, from geopolitical events, natural disasters, climate effects and inflationary pressures.
And as they assess the impacts of these issues on their business, companies continue to face the challenge of providing meaningful and relevant information on these risks and opportunities in their financial reporting, under both IFRS® Accounting Standards and US GAAP.
Standard-setters are also responding. The International Accounting Standards Board (IASB) has added intangible assets to its agenda, along with climate-related and other uncertainties. The US Financial Accounting Standards Board (FASB) is developing new requirements for digital assets, software costs and environmental credit programmes. Both the IASB and FASB are also developing new requirements to improve transparency and comparability in the income statement.
Our updated IFRS compared to US GAAP (PDF 2.19 MB) includes the newly effective requirements for insurance contracts. It also addresses the accounting for income taxes, including new guidance on the global minimum top-up tax and credits under the US's Inflation Reduction Act and CHIPS and Science Act.
Understanding the differences
This guide highlights the key differences between the two frameworks based on 2023 calendar year ends. It does not discuss every possible difference; rather, it is a summary of those areas encountered frequently where the principles differ or where there is a difference in emphasis, specific application guidance or practice.
The focus of this publication is primarily on recognition, measurement and presentation. However, it also covers areas that are disclosure-based, such as segment reporting.
