GAAP vs IFRS: which does your company need?

If you are raising capital, expanding abroad or preparing for due diligence, the accounting standard you report under is not a detail — it shapes how investors read your numbers.

The short version

US GAAP is the standard used by US companies and expected by US investors and the SEC. IFRS is used across most of the rest of the world — the UK, EU, Gulf, Australia and beyond. Which you need usually comes down to where your investors and regulators sit.

Where they differ in practice

• Revenue recognition and lease accounting are broadly converged but differ in the detail.
• Inventory: GAAP permits LIFO; IFRS does not.
• IFRS is principles-based and often more flexible; GAAP is more rules-based and prescriptive.

Converting between them

A conversion is more than relabelling line items — it can change reported profit and equity, and it needs technical memos and an audit trail. That is exactly the kind of work our GAAP / IFRS conversion team does.

Need a conversion or a second opinion? Book a call.