Here are some key points on the relationship between IFRS and local GAAP and how companies have navigated the differences between the two sets of standards:

1. Differences between IFRS and local GAAP: Local GAAP refers to the accounting standards that are specific to a particular country, while IFRS are global accounting standards that have been developed by the International Accounting Standards Board (IASB). There can be significant differences between local GAAP and IFRS, including differences in the way that assets, liabilities, revenue, and expenses are recognized and measured.
2. Adoption of IFRS: Many countries have adopted IFRS as their national accounting standards, either fully or partially. This has reduced the differences between local GAAP and IFRS in those countries.
3. Need for reconciliation: In countries where local GAAP and IFRS differ significantly, companies may need to prepare separate financial statements under each set of standards. This can be a complex and time-consuming process, requiring significant resources and expertise.
4. Use of non-GAAP measures: To address the differences between local GAAP and IFRS, companies may use non-GAAP measures in their financial reporting. These measures are not recognized under either local GAAP or IFRS but can provide additional information to investors and other stakeholders.
5. Challenges in navigating the differences: Navigating the differences between local GAAP and IFRS can be challenging for companies, particularly those that operate in multiple countries. Companies may need to develop specialized accounting policies and procedures to ensure compliance with both sets of standards.

Overall, the relationship between local GAAP and IFRS can be complex, with significant differences between the two sets of standards in some countries.

Companies have navigated these differences through the adoption of IFRS, the preparation of separate financial statements, the use of non-GAAP measures, and the development of specialized accounting policies and procedures.

Despite the challenges, the adoption of IFRS has led to greater consistency and standardization in financial reporting, making it easier for investors and other stakeholders to compare financial statements and make informed decisions.