What is the difference between US GAAP and Canadian GAAP?

GAAP stands for Generally Accepted Accounting Principles. The GAAP’s of the United States and Canada vary somewhat. There are differences in financial statements, assets, and liabilities or financial instruments, balance sheets, income statements. There are differing protocols for particular purposes and the terms for associate investments between the two GAAP’s.

The United States GAAP bases their accounting standards on AICPA Accounting and an Audit guide, while Canada’s GAAP bases their rules to their Accounting Guideline number eight. Canadian GAAP does not necessitate schedules for investments of operations, net asset changes, a full year of investment, and other notes are all mandatory. Also, Canadian GAAP does not require schedules for investments. That being said, the Canadian GAAP is principle-based, while the United States GAAP is rule-based.