Explain difference between IFRS and GAAP.

1.	Explain difference between IFRS and GAAP.
Answer» \tGAAP is a common set of accepted accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements.\xa0\tIFRS is a\xa0set of international accounting standards, which state how particular types of transactions and other events should be reported in financial statements.\tSome accountants consider methodology to be the primary difference between the two systems; GAAP is rules-based and IFRS is principles-based.

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