Groups that report in more than one market often run into the same handful of differences between IFRS and US GAAP. Knowing them early avoids surprises at consolidation and audit.

1. Inventory: LIFO

US GAAP permits the LIFO cost formula. IFRS (IAS 2) does not.

2. Development costs

Under IFRS (IAS 38), development costs are capitalised when specific criteria are met. Under US GAAP, research and development costs are generally expensed as incurred, with limited exceptions such as certain software costs.

3. Revaluation of property, plant and equipment

IFRS allows a revaluation model for property, plant and equipment. US GAAP requires the cost model.

4. Reversal of impairment losses

IFRS permits reversal of impairment losses on assets other than goodwill when conditions improve. US GAAP prohibits reversal for assets held and used.

5. Lessee accounting

IFRS 16 uses a single lessee model. ASC 842 keeps a dual model that distinguishes finance and operating leases, which affects how expense is presented.

This article is a general summary, not accounting advice for your circumstances. Our technical accounting team prepares conversions, gap analyses and position papers under both frameworks.