Because of longstanding convergence projects between the IASB and the FASB, the EXTENT of the specific differences between IFRS and GAAP has been shrinking. YET significant differences do remain, most any one of which can result in significantly different reported results, DEPENDING on a company's industry and individual facts and circumstances.

For example:

• IFRS does not permit Last In, First Out (LIFO).
• IFRS uses a single-step method for impairment write-downs rather than the two-step method USED in U.S. GAAP, making write-downs more likely.
• IFRS requires capitalization of development costs once certain qualifying criteria are MET. U.S. GAAP generally requires development costs to be expensed as incurred, except for costs related to the development of computer software, for which capitalization is required once certain criteria are met.

Because of longstanding convergence projects between the IASB and the FASB, the extent of the specific differences between IFRS and GAAP has been shrinking. Yet significant differences do remain, most any one of which can result in significantly different reported results, depending on a company's industry and individual facts and circumstances.

For example: