Revenue Recognition: IFRS vs. GAAP

In the context of financial reporting standards, it is important to understand the differences and similarities between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Both sets of standards provide a framework for preparing and presenting financial statements, but there are key distinctions between them.

One significant difference concerns the approach taken regarding revenue recognition. Under GAAP, revenue recognition is based on specific, detailed rules, while IFRS uses a more principles-based approach. Given this context, which of the following statements about revenue recognition under IFRS compared to GAAP is correct?