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Bridging the expectations gap

The corporate world is changing. Today’s businesses are expected to act with purpose and to report fully on that purpose. Beyond merely profit, companies are pursuing goals that will support their stakeholders and the planet. This is driving changes in expectations about what information businesses need to provide in their annual reports and financial statements. 

The wheels have been set in motion to develop the global standards for sustainability reporting. But while enhanced reporting requirements are being developed, many companies choose to bridge the expectations gap by reporting their information using non-GAAP measures. The SEC has stricter rules on the use of non-GAAP measures, so differences are more likely.

The new edition (PDF 2.2 MB) of our comparison of IFRS Standards and US GAAP highlights the key differences between the two frameworks, based on 2021 calendar year ends. If you’re a preparer, it may help you to identify areas to emphasise in your financial statements; if you’re a user, it may help you spot areas to focus on in your dialogue with preparers.

Understanding the differences

This guide 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.