The United States is the most prominent country that has not accepted International Financial Reporting Standards (IFRS) for domestic publicly traded companies, requiring them to use US GAAP instead. Other major economies that have not fully adopted IFRS include China and Japan, which utilize their own national accounting standards.
The U.S., China, Egypt, Bolivia, Guinea-Bissau, Macao and Niger don't allow their domestic publicly traded companies to use International Financial Reporting Standards.
IFRS is followed in over 140 countries, and the system is more principle-based as it gives businesses flexibility in applying standards. GAAP on the other hand, is used almost exclusively in the United States and is governed by the Financial Accounting Standards Board (FASB).
No, the use of IFRS Standards is not permitted for domestic companies. All Chinese companies whose securities trade in a public market in China are required to use Chinese Accounting Standards for Business Enterprises (ASBEs) for financial reporting within mainland China.
Declaring (and rightfully so) that their main goal is to protect US investors' interests, the SEC notes that IFRS lacks consistent application, allows too much leeway with judgment, and is underdeveloped in many specific areas, for which the US GAAP has detailed and accepted guidance and established practice ( ...
IFRS are universally accepted standards issued by IASB, the accountants of MNCs are comfortable with IFRS based accounting and also it will enhance the comparability of financial statements of various companies operating in India and other countries.
Since 2012, IFRS have increasingly been adopted in Russia, and they are mandatory for consolidated financial statements, while standalone financial statements must be prepared using RAS. IFRS statements are also required for domestic public companies. IFRS are generally deemed more relevant to the needs of investors.
Voluntary adoption of IFRSs by public companies
Since 2010, eligible listed companies in Japan have been permitted to use IFRSs as designated by the Financial Services Agency of Japan (FSA) in their consolidated financial statements, in lieu of Japanese GAAP.
The Canadian Accounting Standards Board (AcSB) requires publicly accountable enterprises to use IFRS in the preparation of all interim and annual financial statements.
Swiss GAAP permits the use of IFRS or Swiss accounting standards for pension and other post-employment benefit plans, with the election made on a plan-by-plan basis.
Germany is an EU Member State. Consequently, German companies listed in an EU/EEA securities market follow IFRSs since 2005. The European Commission (EC) periodically issues a document which summarises the use of options of the IAS Regulation by European Union Member States.
The Securities and Exchange Commission (SEC) of the Philippines has adopted 'Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures' based on IFRS S1 and IFRS S2. The adoption of the standards represents the finalisation of a consultation that was initiated in July 2025.
International Financial Reporting Standards (IFRS) form the backbone of financial reporting in Australia. Since their adoption in 2005, IFRS has shaped how businesses communicate financial information, ensuring consistency and transparency.
Malaysia has fully adopted IFRS through its MFRS framework, regulated by the Malaysian Accounting Standards Board (MASB). This aligns Malaysia with international best practices, supporting transparency and comparability.
It is well-known that the UAE has not only adopted the IFRS standards, but it has made it mandatory for companies or businesses to prepare financial statements with IFRS. Obviously, this big change in the financial and business sector must be in good alignment with the UAE's laws and regulations to be adopted rapidly.
IFRS adoption in Taiwan has been gradually implemented, particularly for publicly listed companies and financial institutions. However, private companies may still use Taiwan GAAP, though IFRS-compliant financial reporting is encouraged to align with international financial markets.
GAAP is a rule-based system that all domestic publicly traded companies must follow when filing financial statements. Although Canada once mirrored GAAP, its publicly accountable enterprises fully adopted IFRS in 2011. Now, only certain rate-regulated or SEC filers may still use GAAP in Canada.
2021 FAR Changes
The FAR section of the CPA Exam saw the elimination of the International Accounting Standards Board (IASB) framework and the IFRS versus U.S. GAAP content area.
Singapore has been following a path of converging Singapore Financial Reporting Standards (SFRS) with IFRS for Singapore listed companies for many years and Singapore has adopted substantially all IFRSs issued by the IASB as SFRSs, albeit at times with different effective dates and transition requirements.
In India, local accounting standards are converged with IFRS instead of the adoption of IFRS word to word. The responsibility of convergence with IFRS is given to the local government, accounting, and regulatory bodies like ICAI.
One rule mandates that certain companies report using the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (S1 and S2), making Mexico the first country in North America to adopt these global standards on a mandatory basis.
SOCPA Adopts IFRS 19 for Implementation in Saudi Arabia. The Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by its Accounting Standards Board, has adopted the International Accounting Standards Board's IFRS 19 for implementation in Saudi Arabia.
Rules-Based Approach (U.S. GAAP): o Apple follows the detailed guidance provided by U.S. GAAP, ensuring compliance with regulatory requirements. Key Observations: Apple operates within a rules-based framework but benefits from the principles-based flexibility of IFRS in foreign operations.
Sweden is an EU Member State. Consequently, Swedish companies listed in an EU/EEA securities market follow IFRSs since 2005. The European Commission (EC) periodically issues a document which summarises the use of options of the IAS Regulation by European Union Member States.
1 The International Financial Reporting Standards (IFRS) have been mandatory for preparing the con- solidated financial statements of capital market-oriented companies in Germany since fiscal years 2005 and 2007, respectively (see Regulation (EC) No.