An IFRS not in GAAP

It is interesting that the one most important accounting rule (or principle) not included in the US accounting principles or GAAP is what IFRS call the ‘accrual basis of accounting’. Paragraph 27 of IAS 1, Presentation of Financial Statements states clearly:

“An entity shall prepare its financial statements, except for cash flow information, using the accrual basis of accounting.”

Now I am not implying that American financial statements are not prepared using an accrual basis. Of course they are. All I am trying to say here is that this is one of the most fundamental accounting rules and I am surprised it is not one of the Generally Accepted Accounting Principles.

I may perhaps be alone but I am still surprised.