What is the difference between IFRS and US GAAP in revenue recognition?

In terms of revenue recognition, the IFRS guidelines are much more general in their requirements than GAAP. IFRS revenue recognition is guided by two primary standards and four general interpretations. GAAP, on the other hand, has highly specific rules and procedures codified for a huge variety of industries on a case-by-case basis.

For example, under GAAP, a construction company can elect to defer revenue recognition until a contract is completed. This rule, which is specific to construction companies, allows them to delay showing any revenue during the period of time in which they are actually providing value to a customer.

Under IFRS rules, however, this is prohibited. Instead, the company has two methods of revenue recognition to choose from:

Recognize contract revenue based on the value of the contract, the estimated total cost, and the percentage of the contract that has been completed. Through this method, known as the "percentage-of-completion method," the revenue recognized is proportional to the relative completion of the contract. 

Recognize revenue as the recoverable costs incurred over the reportable period.

IFRS sticks more closely to the principle that revenue should be recognized as value delivered, while the industry-specific rules under GAAP give the construction company another option outside that broad principle