Which of these statements regarding the IFRS and U.S. GAAP is correct?
A) U.S. GAAP is considered to be "principles-based".
B) U.S. GAAP is considered to be less detailed than IFRS.
C) IFRS is considered to be "principles-based" and less detailed than U.S. GAAP
D) Both U.S. GAAP and IFRS are considered to be "rules-based", but U.S. GAAP tends to be more complex.

Question

Quizplus · Accepted Answer

IFRS is considered to be "principles-based" and less detailed than U.S. GAAP. This means that IFRS has more general principles that are open to interpretation, whereas U.S. GAAP is more rule-based and prescriptive in its guidance. Additionally, IFRS tends to have fewer specific requirements and allows for more judgment and interpretation by companies and auditors.

Which of These Statements Regarding the IFRS and U