What You Really Need to Know About IFRS and GAAP During Interviews

Investment banking interviews rarely require you to recite accounting standards. You need to explain the main differences between IFRS and U.S. GAAP, trace their effects through the financial statements, and recognize when they can distort comparisons between companies.

Author: Ishaan Nair Updated 4 min read

Know the purpose of each framework

International Financial Reporting Standards, or IFRS, are used in many countries outside the United States. U.S. Generally Accepted Accounting Principles, or U.S. GAAP, are primarily used by U.S. companies. Both frameworks aim to produce useful financial reporting, but they can prescribe different accounting treatments for the same economic activity.

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