IFRS vs US GAAP cheat sheet

Students revising for exams and accountants moving between frameworks often need the differences at a glance. This quick reference brings the key IFRS vs US GAAP differences into one comparison chart, with a link to the detailed guide for each topic.

By Muhammad Bilal, Chartered Accountant. Reviewed by Awais Jameel, Chartered Accountant. 3 minute read.

Short answer

This IFRS vs US GAAP cheat sheet is a one-page key differences table covering 18 topics, from revenue and leases to consolidation and the cash flow statement. The biggest differences are LIFO, which only US GAAP allows; the lessee lease model; development costs, capitalised only under IFRS; impairment reversals, allowed only under IFRS; credit losses, where CECL recognises lifetime losses from day one; and consolidation, where IFRS recognises de facto control. Each row links to a full comparison with a worked example.

At a glance

Topics covered
18
Biggest number differences
LIFO, leases, development costs
Converged
Revenue, business combinations, mostly
IFRS only
Revaluation, impairment reversals
US only
LIFO, valuation allowances
Each row
Links to a full comparison
IFRS vs US GAAP cheat sheetTopics covered: 18; Biggest number differences: LIFO, leases, development costs; Converged: Revenue, business combinations, mostly; IFRS only: Revaluation, impairment reversals; US only: LIFO, valuation allowances; Each row: Links to a full comparison.KEY FACTS AT A GLANCEIFRS vs US GAAP cheat sheetTopics covered18Biggest number differencesLIFO, leases, developmentcostsConvergedRevenue, businesscombinations, mostlyIFRS onlyRevaluation, impairmentreversalsUS onlyLIFO, valuationallowancesEach rowLinks to a fullcomparisonTax BakersIFRS vs US GAAP cheat sheetTopics covered: 18; Biggest number differences: LIFO, leases, development costs; Converged: Revenue, business combinations, mostly; IFRS only: Revaluation, impairment reversals; US only: LIFO, valuation allowances; Each row: Links to a full comparison.KEY FACTS AT A GLANCEIFRS vs US GAAP cheat sheetTopics covered18Biggest number differencesLIFO, leases, development costsConvergedRevenue, business combinations, mostlyIFRS onlyRevaluation, impairment reversalsUS onlyLIFO, valuation allowancesEach rowLinks to a full comparisonTax Bakers
Key facts at a glance, as set out in this guide.

IFRS vs US GAAP cheat sheet: the key differences table

TopicIFRSUS GAAP
RevenueFive-step model; collectibility more likely than notSame model; collectibility likely
Leases, lesseeOne model: depreciation and interestOperating (straight-line) or finance
InventoryFIFO or weighted average; LIFO bannedLIFO allowed
Inventory write-downsReversed when NRV recoversNot reversed
Property, plant and equipmentCost or revaluation; components requiredCost only; components optional
Development costsCapitalised when criteria metExpensed (software exceptions)
Impairment of assetsOne step; reversals allowed except goodwillUndiscounted screen; no reversals
GoodwillNot amortised; CGU testNot amortised (private: may amortise); reporting unit
Credit lossesThree stages: 12-month or lifetimeLifetime from day one (CECL)
Financial asset classificationBusiness model and SPPILegal form and intent
Deferred tax assetsRecognised if probableRecognised in full, less valuation allowance
Uncertain tax positionsIFRIC 23Two-step test
Provisions thresholdMore likely than notLikely to occur
Range of outcomesMidpointLow end
Business combinations: NCIFair value or proportionate shareFair value only
ConsolidationOne control model; de facto controlVIE and voting interest models
Income statementIFRS 18 categories and operating profit (2027)No required subtotals; ASU 2024-03 expense detail
Interest paid, cash flowsFinancing (IFRS 18)Operating

Which differences affect the numbers most?

The differences that move the numbers mostThe differences that move the numbers mostIFRSUS GAAPLeasesOne modelTwo modelsLIFOBannedAllowedDevelopmentcostsCapitalisedExpensedImpairmentreversalAllowedBannedCredit losses12-month orlifetimeLifetimefrom day one
Five differences that most often change reported profit and assets.

For most companies, the lease model, LIFO, development costs and credit losses have the largest effect on reported profit and assets. For acquisitive groups, goodwill and the non-controlling interest matter more; for holding companies, consolidation.

Which framework is more conservative?

Neither consistently. IFRS recognises provisions earlier and at higher amounts, and stage 1 credit losses lower than CECL. US GAAP never reverses impairments or inventory write-downs and expenses development costs, but allows LIFO, which in rising prices lowers profit and inventory. The answer depends on the company's mix of assets, liabilities and transactions.

Do the financial statements look different?

Yes. IFRS companies present a statement of financial position, often with non-current assets first, and from 2027 an income statement with IFRS 18's operating, investing and financing categories. US companies present a balance sheet in order of liquidity, current assets first, and follow SEC rules on line items. Both present comprehensive income, changes in equity and cash flows.

How often do these differences change?

Each board issues new standards and amendments every year, and some differences narrow while others open, as IFRS 18 and ASU 2024-03 show for the income statement. This cheat sheet reflects the standards in force in 2026, with IFRS 18 noted where it changes the answer from 2027.

Which areas are converged?

Revenue recognition (IFRS 15 and ASC 606) and business combinations (IFRS 3 and ASC 805) were developed jointly and give the same answer in most cases. Fair value measurement (IFRS 13 and ASC 820) is also essentially the same. Differences in these areas are narrow and are covered in the linked guides.

How should students use this cheat sheet?

Learn the direction of each difference, which framework is stricter or more permissive, and one example for each. Exam questions often test LIFO, revaluation, impairment reversal, development costs, provisions thresholds and lease classification. The key differences guide explains the reasons behind them, and the conversion guide shows how they add up in an equity reconciliation.

Do the frameworks use different terms?

IFRSUS GAAP
Statement of financial positionBalance sheet
ProvisionsAccrued liabilities, loss contingencies
Non-controlling interestNoncontrolling interest
Net realisable valueNet realizable value
Share premiumAdditional paid-in capital
Cash-generating unitAsset group, reporting unit (for goodwill)

Need help applying the standards?

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Questions people ask

What are the main differences between IFRS and US GAAP?

The biggest are LIFO, the lessee lease model, development costs, impairment reversals, credit losses, provisions thresholds and consolidation.

Is LIFO allowed under IFRS?

No. Only US GAAP allows LIFO.

Which IFRS and US GAAP standards are converged?

Revenue, business combinations and fair value measurement are substantially converged.

Does IFRS allow revaluation of property, plant and equipment?

Yes, under the revaluation model. US GAAP does not.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IFRS Foundation: IFRS Accounting Standards
  2. FASB Accounting Standards Codification

Rules and fees change. If you are reading this long after October 4, 2026, confirm the figures with the source before you rely on them.

Accounting standardsIFRS vs US GAAP: the key differences in one guideIFRS vs US GAAPConverting from US GAAP to IFRSIFRS vs US GAAPIFRS 15 vs ASC 606: revenue differences

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This guide is general information. It is not tax or legal advice for your situation.