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What are the difference between IFRS and GAAP?

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More particularly, when is IFRS used for accounting guidance and when is GAAP used? What are the regulatory implications?

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International Financial Reporting Standards (IFRS) is the accounting standard used in many countries around the world while U.S. Generally Accepted Accounting Principles (GAAP) is used primarily in the United States. Key differences between the two methods include:

Extraordinary items on the income statement - IFRS does not segregate these items on the income statement while under GAAP they are reported below the net income line.

Inventory accounting - IFRS does not allow the last in first out (LIFO) method of inventory accounting

Capitalization of development costs - IFRS allows capitalization under certain conditions where GAAP requires similar activities to be expensed

See the white paper from Grant Thornton at the source link below for a more comprehensive comparison.