The use of horizontal and vertical analysis eliminates many differences between GAAP and IFRS,but the user must exercise some caution when drawing conclusions from these reports.

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Horizontal and vertical analysis are common financial statement analysis techniques that can be used by entities following both GAAP and IFRS. These techniques allow for easier comparison between periods or across companies. However, users must exercise caution when interpreting these reports as they do not provide a complete picture of the financial health of a company and can mask underlying issues.

The Use of Horizontal and Vertical Analysis Eliminates Many Differences