The Difference between the U.

S GAAP, IFRS, and Moroccan GAAP or

PCGM:

SUMMARY:
There are different types of accounting standards that are followed around the globe such as: the
U.S GAAP, IFRS and the Moroccan GAAP or PCGM, drawn up to clarify and specify how
organizations should manage their financial statements.
IFRS is a set of accounting rules for the financial statement of listed companies, designed to
make them consistent, transportable and easy to compare.
The U.S GAAP represents a number of common accounting rules and standards. The role of U.S
GAAP is to guarantee that the financial reporting is as clear and consistent for a company to
another.
We observe that while the both the U.S GAAP and IFRS have similarities concerning details of
how organizations can maintain their records, they still differ in : how they treat their inventory –
IFRS adopted the LIFO method while the U.S GAAP adopted both LIFO and FIFO methods, and
differ in much more other things.
The Moroccan GAAP or PCGM is similar to the IFRS. However, contrary to the Moroccan
GAAP, IFRS seems to be more general and target a variation of associations involved.

U.S GAAP vs IFRS:

DIFFERENCES IFRS U.S GAAP

Based on Principles Rules

Inventory Methods Allowed IFRS allows only LIFO of U.S GAAP uses both LIFO
inventory evaluations and FIFO of inventory
evaluations

Inventory Reversal IRFS allows write down U.S GAAP doesn’t allow
reversal write down reversal

Valuation of Fixed Assets IFRS uses a measurement U.S GAAP uses a cost model
model for evaluating fixed for evaluating fixed assets
assets

1
 Cost of Development The cost of development The cost of development
under IFRS can be capitalized can’t be capitalized

IFRS vs Moroccan GAAP/PCGM:

DIFFERENCES IFRS Moroccan GAAP

Developed by IASB Government

Methods Uses communication to Used with accounts and

proceed towards financial numbered accounts as well as
information accounting rules.