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What are some advantages of using IFRS accounting?

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What are some advantages of using IFRS accounting with financial statements to an end user (as opposed to US GAAP)? What are some disadvantages?

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Your tutorial is 354 words and two references and includes two advantage and two disadvantages. The main differences between IFRS and US GAAP is mentioned with an example.

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What are some advantages of using IFRS accounting with financial statements to an end user (as opposed to US GAAP)? What are some disadvantages?
IFRS is more principle based compared to the US GAAP extensive set of "rules." That is, IFRS requires that the preparer create an argument that supports their choices and shows how it fits the spirit of the pronouncement and not just the technical requirement (as in US GAAP). For example, US GAAP requires that if you own 50% or more of the stock, you effectively control them and have to consolidate their financial statements into your own. Under IFRS, you consolidate if you "control" the other firm but they ...

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  • MSc, University of Virginia
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