Compare and contrast the rules of reporting for four of those topics, based on GAAP and IFRS.

Companies must follow the guidelines set by International Financial Reporting Standards, or IFRS outside the US when accounting for specific financial transactions. While both methods of reporting provide a reliable framework for measuring business performance – there are some key differences which should be taken into account when preparing financial statements.

For example, inventories must be handled differently under GAAP. They are required to be recorded at either their market or cost value. IFRS allows them only to be reported at cost. The other difference is how impairment losses are measured. GAAP allows only for the future cash flows to be considered, while IFRS gives more freedom and also includes factors that do not involve cash such as market conditions.

Overall, it’s important to understand both GAAP and IFRS when preparing financial statements because there are several discrepancies between the two; although most areas have been harmonized over time – it’s still essential for organizations to stay up-to-date with any changes in order ensure proper compliance going forward.