IFRS® compared to US GAAP

Driving clarity in financial reporting

Investors and regulators have been raising concerns about the clarity of financial reporting. Alongside this, artificial intelligence has fundamentally changed the face of communication, impacting confidence and trust. Maintaining stakeholders’ confidence and trust is high on the agenda for all companies, with clarity of reporting playing a key role.

Against the backdrop of these concerns, both the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are focusing on presentation and disclosure matters. A number of amendments to the existing presentation and disclosure requirements under IFRS Accounting Standards become effective this year and a new accounting standard – IFRS 18 Presentation and Disclosure in Financial Statements – has been released. The FASB is also developing new requirements to enhance transparency and comparability in the income statement.

Both standard-setters are also responding to the need for clarity about emerging topics such as crypto assets and environmental credit programmes. The IASB is performing research; the FASB has also developed specific new requirements and proposals. With new differences between IFRS Accounting Standards and US GAAP on the horizon, dual reporters need to monitor these developments closely.

Our updated IFRS compared to US GAAP (PDF 2.24 MB) highlights the key differences between the two frameworks based on 2024 calendar year ends.

Understanding the differences

This guide does not discuss every possible difference; rather, it is a summary of those areas encountered frequently when the principles differ or when there is a difference in emphasis, specific application guidance or practice.

This publication focuses primarily on recognition, measurement and presentation. However, it also covers areas that are disclosure-based, such as segment reporting.