GAAP and IFRS are both a set of standards for accountants to follow when reporting financials for an organization. They both are a set of standards that guide accountants in how to properly disclose information for investors and the public. If these standards are not followed the organization can receive harsh punishment depending on the severity of the standards not followed. Some of the differences are GAAP is more rules-based while IFRS focuses more on principles. Some other differences are IFRS is mostly used around the world as it stands for "International Financial Reporting standards". While GAAP is primarily used in the United States and companies participating in the NYSE. Some of the other differences pertain to disclosure methods such as LIFO and FIFO, GAAP allows the use of LIFO while IFRS does not. In addition, most of the other differences are related to reporting of how assets, intangible assets, and property plant and equipment are valued and reported on the financial statements.

In relation to different industries, GAAP and IFRS may be used symbiotically or one method is chosen over the other. Industries that primarily invest in land for future gain may use IFRS as it specifies that organizations must disclose investment properties and their value. An organization that primarily invests in assets such as buildings or property plant and equipment will report in IFRS, if they can, as IFRS allows reporting done at cost and then can be adjusted in subsequent years. Lastly, an organization that produces software for external use will most likely report using GAAP as this allows organizations to expense their R&D once the software is up and running.

Do you agree. Please explain.