Reading the accounts
GAAP and IFRS
The two main sets of accounting rules companies must follow when reporting results.
How it works
US companies report under US GAAP; most of the rest of the world uses IFRS. Both aim for comparability, and they differ in real ways — inventory methods, lease treatment, development cost capitalisation.
Reported figures under either are the audited baseline that adjusted numbers depart from.
Related terms
More in Reading the accounts
- Going concern
- Free cash flow
- Goodwill
- Fixed costs
- Gross margin
- Economic profit
- Earnings per share
- Intangible assets
All 51 Reading the accounts terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.