The differences between GAAP and IFRS can be illustrated in the table below:

Aspect GAAP IFRS
System Rules-based Principles-based
Level of Detail More detailed Less detailed
Interpretations Specific More room for interpretation
Financial Statements May necessitate long disclosures May require detailed financial notes
Inventory Treatment Allows last-in, first-out (LIFO) Bans the use of last-in, first-out (LIFO) for inventory
Weighted Average-Cost Method Allows FIFO method Allows FIFO method
Inventory Reversals Doesn’t allow inventory reversals Allows inventory reversals (in certain situations)