The two systems have the same goal: clarity and honesty in financial reporting by publicly-traded companies. IFRS was designed as is a standards-based approach that could be used internationally. GAAP is a rules-based system used primarily in the U.S. Although most of the world uses IFRS standards, it is still not part of the U.S. financial accounting world. The SEC continues to review switching to the IFRS but has yet to do so. Several methodological differences exist between the two systems. For instance, GAAP allows a company to use either of two inventory cost methods: First in, First out (FIFO) or Last in, First out (LIFO). LIFO, however, is banned under IFRS.