Research and write how the difference between IFRS and GAAP has evolved since the video (The Difference between GAAP and IFRS) was produced in 2018. Identify the main differences and provide an...

The Difference between GAAP and IFRS        4
THE DIFFERENCE BETWEEN GAAP AND IFRS
Table of Contents
Introduction    3
Analysis    3
Conclusion    5
References    6
Introduction
    The major difference between Generally Accepted Accounting Principal (GAAP) and International Financial Reporting System (IFRS) was that while GAAP is based on certain rules, IFRS is based on specific principals. Generally, IFRS is a guideline which consists of much fewer overall details compared to the GAAP. Further, GAAP is a very old set of accounting rules which was introduced in the year 1930. GAAP as introduced post the 1929 crash of the stock market and the Great Depression through which the US federal government wanted to regulate the practices of the public companies traded on the stock exchange along with regulation of other major market participants. Hence, it was due to the implementation of GAAP, the public traded companies were required to use the GAAP laws for the purpose of reporting (Ross, 2021). On the other hand, it was in the year 2003, the International Accounting Standards Boards issued IFRS 1 by replacing SIC-8. Therefore, IFRS standards was used as a complete set of financial statement which helped in covering the IFRS 1 current reporting period and the prior year. Hence, IFRS necessitated that the financial statements must be prepared as per the four basic principles which are based on precision, relevance, consistency and comparability.
Analysis
    The Generally Accepted...