reply to The ways that GAAP and IFRS treat particular components of different financial records varies considerably as well. These distinctions include: a. Techniques for inventory valuation Inventory should be reported at the lesser value (net realizable value or cost) under IFRS, however it should be noted at the reduced amount under GAAP. There is a little affectable disagreement since the two entities use the term "net realizable value" in somewhat different situations. Net realizable value, as defined by GAAP, is almost equivalent to the selling price; the latter must be determined as precisely as is practical following the deduction of any expenditures that may be reasonably connected to selling. The most accurate assessment of the projected value realization of inventories is net realizable value, as defined by IFRS. b. Cash flow statement Dividends paid under GAAP are included within the finance portion of GAAP, whereas interest paid and received, together with received dividends, are indicated under the operational section. Under IFRS, all dividends and interest can be recorded under the operational or financial component