There is Main difference between IFRS [International Financial Reporting Standards] and Saudi GAAP [Generally Accepted Accounting Principles] ?

IFRS is a principle of the standard-based approach and is used internationally, while GAAP is a rule-based system compiled in the U.S. The IASB does not set GAAP, nor does it have any legal authority over GAAP.

The key differences between GAAP and IFRS include: GAAP is a framework based on legal authority while IFRS is based on a principles-based approach. GAAP is more detailed and prescriptive while IFRS is more high-level and flexible. GAAP requires more disclosures while IFRS requires fewer disclosures

1. Adoption and Applicability: IFRS is widely adopted by many countries around the world, including over 120 countries, while Saudi GAAP is specifically designed for accounting practices in Saudi Arabia.

2. Regulatory Authority: IFRS is issued by the International Accounting Standards Board (IASB), an independent international standard-setting body. In Saudi Arabia, the Saudi Organization for Certified Public Accountants (SOCPA) is responsible for issuing accounting standards and guidelines, which form the basis for Saudi GAAP.

3. Format and Structure: IFRS follows a principle-based approach, providing broad guidelines and objectives, with some specific requirements. Saudi GAAP, on the other hand, tends to have more detailed rules and specific guidelines for various accounting treatments.

4. Financial Statement Presentation: IFRS places greater emphasis on the fair presentation of financial statements, focusing on providing relevant and reliable information. Saudi GAAP may have specific requirements or formats for financial statement presentation that differ from IFRS.

5. Islamic Finance: Saudi Arabia has a significant presence of Islamic finance, and as a result, Saudi GAAP incorporates specific accounting principles and guidelines to address the unique aspects of Islamic finance transactions, such as Shariah compliance and profit-sharing arrangements. IFRS, being a global standard, does not specifically address Islamic finance in the same level of detail.

IFRS are developed by international body which are being updated by the said body.  Saudi GAAP are customised accounting standard being updated by it also.

GAAP lists assets in decreasing order of liquidity (i.e. current assets before non-current assets), whereas IFRS reports assets in increasing order of liquidity (i.e. non-current assets before current assets.

IFRS are international standards while GAAP are nationally set principles by the national accounting bodies to guide the accounting undertakings

IFRS are international Financial reporting standards that are applicable at a global level or internationally. This therefore implies that all companies irrespective of their domicile are required to implement and apply the reporting standards that are required by IFRS. This is a good move because it puts all the financial statements of the different entities irrespective of their location into the same yardstick and therefore provided a more accurate comparison of financial statements and reports of these entities.  The saudi GAAP ( Generally Accepted Accounting Principles) are designed to provide a more uniform reporting standard for companies or entities that are specificlly based in saudi Arabia. This therefore means that comparability of the financial statements for companies that follow the saudi GAAP and IFRS will be more onerous than the case would have been if they were prepared under a similar standard

IFRS stands for International Financial Reporting Standars issued by IASB which are applicable at international level for public limited companies. Saudi GAAP are the generally accepted accounting principles issued by the Saudi Accounting body but the Saudi GAAP are alos indeed in line with international GAAP. Saudi GAAP are applicable on Saudi companies only while IFRS are applicable on companies at international level.

IFRS is internationally accepted code of accounting practice. Its like an yardstick. On the other hand Saudi GAAP is applicable for Saudi economy only ofcourse the platform taken from is International GAAP. Saudi may have its own GAAP for its Company's .