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Whereas GAAP is a generalization of specifics to create a single balance sheet, necessarily leaves out details. Specific debt, hedging, asset securities forms are not generalize; they are specific to allows the investor to see the truth.
An example, is IFRS accounting rule on consolidated balance sheets, and listed all the debt of a company, if have voting control. Failure to protect over listing debt to take a company private and smear the balance sheet. An example, Canwest is debt free (after the debt exchanges) yet the Canwest lists debt that belongs to Goldman Sachs, as Canwest debt. Investors are having their shares expropriated, and giving a debt free company away with cash in the bank. Creates issues for the CCAA and that if the newspapers sell for more than 950 million, all extra cash in the rearranged Canwest coffers; all it takes is selling the newspapers at 1.3 billion and Canwest's shares are gold.
Generalized principles do just that generalize and hide. Specific debt accounting would not have this issue that GAAP has with how to consolidate a balance sheet for several part owned subsidiaries or investments. GAAP improved when combined with specific accounting securites forms.
