" IFRS has an entirely different approach, focusing on objectives, and also encourages the use of "illustrative examples relating to specific events and transactions." The GAAP system is therefore significantly more robust. There are also differences between the systems with respect to the valuation of inventories, where GAAP permits LIFO and IFRS does not. IFRS also insists that "all inventories having a similar nature" are valued using the same formula, something that GAAP does not require. With goodwill, there are some significant differences, for example in the methodology of testing goodwill impairment, which is key to valuing goodwill on the balance sheet. The SEC document outlines in detail the differences between the systems in valuing all manner of balance sheet items. There are differences in the definition of key terms, and there are differences in the methodologies allowed in the valuation process.

It should be noted that there is an ongoing convergence process between the U.S. GAAP and IFRS with respect to many of these issues. The FASB periodically issues memoranda regarding the progress of the convergence project. For example, convergence on the valuation of financial instruments...

(2008). Completing the February 2006 memorandum of understanding: A progress report and timetable for completion. Financial Accounting Standards Board. Retrieved April 4, 2012 from http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175819018778&blobheader=application%2Fpdf
O'Rourke, T (2005). Irish GAAP converges to IFRS. Chartered Accountants Ireland. Retrieved April 4, 2012 from http://www.accountancyireland.ie/Archive/2005/October-2005/Irish-GAAP-Converges-to-IFRS/

PWC. (2012). IFRS adoption by country. Price Waterhouse Coopers. Retrieved April 4, 2012 from http://www.pwc.com/us/en/issues/ifrs-reporting/country-adoption

SEC.gov. (2011). Work plan for the consideration of incorporating IFRS into the financial reporting system of U.S. issuers. Securities and Exchange Commission. Retrieved April 4, 2012 from http://www.sec.gov/spotlight/globalaccountingstandards/ifrs-work-plan-paper-111611-gaap.pdf