|FRAMEWORK |
| |U.S. GAAP |IFRS |Similarities |
|Purpose of Framework |The FASB framework resides lower in hierarchy. |Management is explicitly required to |Both the frameworks are similar in |
| |Management is not required to prioritize it if no|prioritize the IASB framework if there is |their purpose to assist in developing|
| |standard is available. |no standard or interpretation available. |and assisting standards. |
|Objectives of |It provides different objectives for business |It gives one objective for different |Both frameworks have a broad focus to|
|financial statement |entities versus non business entities. |business entities. |provide relevant information to a |
| | | |wide range of users. |
|Underlying assumptions|Although it recognizes, but not given much |Give importance to accrual and going | |
| |prominence is given to accrual and going concern |concern basis | |
| |basis. In fact going concern assumption is not | | |
| |well developed in particular | | |
|