Accounting Standards — US GAAP vs IFRS

A US GAAP vs IFRS comparison reference, topic by topic — what each framework requires and, crucially, where they diverge (which is most of the time). Built for multinational, digital-transformation, and statutory-reporting work, and cross-referenced to the relevant SAP implementation under SAP & Enterprise Systems where one exists.

Pick a topic from the sidebar. Each page covers the model, a US-vs-IFRS difference table, the key judgment areas, and the SAP tie.

These are educational references and original syntheses — not investment advice, and not a substitute for the standards themselves.

Articles

• Borrowing Costs — ASC 835-20 vs IAS 23 — Capitalization of borrowing costs on qualifying assets under US GAAP and IFRS — converged in principle, with minor scope differences.
• Business Combinations — ASC 805 vs IFRS 3 — Acquisition accounting under US GAAP and IFRS — largely converged, with the key choice on non-controlling-interest (and goodwill) measurement.
• Consolidation / Control — ASC 810 vs IFRS 10 — Which entities to consolidate under US GAAP and IFRS — the dual VIE/voting model vs IFRS's single control model.
• Discontinued Operations & Held for Sale — ASC 205-20/360 vs IFRS 5 — Held-for-sale measurement and discontinued-operations presentation under US GAAP and IFRS — aligned measurement, differing definition of a discontinued operation.
• Earnings Per Share — ASC 260 vs IAS 33 — Basic and diluted EPS under US GAAP and IFRS — mostly converged, with minor differences in share-settlement presumptions and dilutive computations.
• Employee Benefits / Pensions — ASC 715 vs IAS 19 — Defined-benefit pension accounting under US GAAP and IFRS — the expected-return-vs-net-interest difference and the treatment of actuarial gains and losses.
• Fair Value Measurement — ASC 820 vs IFRS 13 — The fair value measurement framework under US GAAP and IFRS — essentially converged: exit price, the three-level hierarchy, and highest-and-best-use.
• Financial Instruments — IFRS 9 vs US GAAP — Classification & measurement and expected-credit-loss impairment under IFRS 9 vs US GAAP (ASC 320/321/326) — two of the larger divergences between the frameworks.
• Financial Statement Presentation — ASC 205/220 vs IFRS 18 — Income-statement presentation under US GAAP and IFRS — and the divergence IFRS 18 introduces from 2027 with defined categories, required subtotals, and management-defined performance measures.
• Foreign Currency — ASC 830 vs IAS 21 — Functional currency, remeasurement and translation under US GAAP and IFRS — largely converged, with the key divergence in hyperinflationary economies.
• Goodwill — ASC 350 vs IAS 36 — Goodwill impairment under US GAAP and IFRS — the unit of account (reporting unit vs CGU), no amortization, and the mechanics of the impairment test.
• Government Grants — IAS 20 vs US GAAP — Government grant and assistance accounting under IFRS (IAS 20) and how US GAAP handles it — no comprehensive US recognition standard, only disclosure (ASC 832).
• Income Taxes — ASC 740 vs IAS 12 — Deferred tax under US GAAP and IFRS — the shared temporary-difference approach and the differences in uncertain tax positions, backwards-tracing, and DTA recognition.
• Intangible Assets & R&D — ASC 730/350 vs IAS 38 — Research and development and intangible-asset accounting under US GAAP and IFRS — the development-cost divergence that reshapes the asset base of R&D-heavy firms.
• Interim Reporting — ASC 270 vs IAS 34 — Interim financial reporting under US GAAP and IFRS — the integral-view vs discrete-view divergence that changes how interim costs are recognized.
• Inventory — ASC 330 vs IAS 2 — Inventory cost-flow assumptions and measurement under US GAAP and IFRS — LIFO, the lower-of-cost-or-NRV ceiling, and write-down reversals.
• Investment Property — IAS 40 (no US equivalent) — Investment property under IFRS (IAS 40) and how US GAAP differs — a separate asset category and an optional fair value model that US GAAP does not have.
• Leases — ASC 842 vs IFRS 16 — Lessee and lessor lease accounting under US GAAP and IFRS — the on-balance-sheet model and the key divergence in the lessee approach.
• PP&E and Impairment — ASC 360 / IAS 16 / IAS 36 — Property, plant & equipment measurement and long-lived-asset impairment under US GAAP and IFRS — the cost-vs-revaluation model and the one-step vs two-step impairment test.
• Provisions & Contingencies — ASC 450 vs IAS 37 — Loss provisions and contingencies under US GAAP and IFRS — the recognition-threshold and measurement differences that make IFRS recognize earlier.
• Related-Party Disclosures — ASC 850 vs IAS 24 — Related-party disclosure under US GAAP and IFRS — mostly converged, with IFRS additionally requiring key-management-personnel compensation disclosure.
• Revenue Recognition — ASC 606 vs IFRS 15 — The five-step revenue model and the US GAAP vs IFRS differences that matter — a generic accounting-standard reference, independent of any ERP.
• Segment Reporting — ASC 280 vs IFRS 8 — Operating-segment disclosure under US GAAP and IFRS — converged on the management approach, with a recent US expansion of segment-expense disclosure.
• Share-Based Payment — ASC 718 vs IFRS 2 — Share-based payment under US GAAP and IFRS — grant-date fair value with differences in forfeitures, graded-vesting attribution, and deferred tax.
• Statement of Cash Flows — ASC 230 vs IAS 7 — Cash flow statement classification under US GAAP and IFRS — the prescriptive vs policy-choice treatment of interest, dividends, and overdrafts.