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    Ifrs VS Us Gaap

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    Pratidina Aji Widodo
    US GAAP and IFRS have some differences in financial statement presentation and recognition/classification of certain items. US GAAP requires 3 years of income statements and balance sheets while IFRS allows 2 years. IFRS also places non-current assets before current assets on the balance sheet. Both standards have converged on revenue recognition with IFRS 15 and leases with IFRS 16, introducing similar right of use models, but IFRS 16 does not distinguish between operating and finance leases. There are also differences in accounting for items like development costs, deferred taxes, investment property, and biological assets.

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    Ifrs VS Us Gaap

    Uploaded by

    Pratidina Aji Widodo
    126 views1 page
    US GAAP and IFRS have some differences in financial statement presentation and recognition/classification of certain items. US GAAP requires 3 years of income statements and balance sheets while IFRS allows 2 years. IFRS also places non-current assets before current assets on the balance sheet. Both standards have converged on revenue recognition with IFRS 15 and leases with IFRS 16, introducing similar right of use models, but IFRS 16 does not distinguish between operating and finance leases. There are also differences in accounting for items like development costs, deferred taxes, investment property, and biological assets.

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    IFRS VS US GAAP

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    US GAAP and IFRS have some differences in financial statement presentation and recognition/classification of certain items. US GAAP requires 3 years of income statements and balance sheets while IFRS allows 2 years. IFRS also places non-current assets before current assets on the balance sheet. Both standards have converged on revenue recognition with IFRS 15 and leases with IFRS 16, introducing similar right of use models, but IFRS 16 does not distinguish between operating and finance leases. There are also differences in accounting for items like development costs, deferred taxes, investment property, and biological assets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    126 views1 page

    Ifrs VS Us Gaap

    Uploaded by

    Pratidina Aji Widodo
    US GAAP and IFRS have some differences in financial statement presentation and recognition/classification of certain items. US GAAP requires 3 years of income statements and balance sheets while IFRS allows 2 years. IFRS also places non-current assets before current assets on the balance sheet. Both standards have converged on revenue recognition with IFRS 15 and leases with IFRS 16, introducing similar right of use models, but IFRS 16 does not distinguish between operating and finance leases. There are also differences in accounting for items like development costs, deferred taxes, investment property, and biological assets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    US GAAP vs.

    IFRS Cheat Sheet

    US GAAP IFRS
    Financial Statement Presentation
    Income Statement 3 years required 2 years allowed
    Balance Sheet Current before non-current Non-current before current
    3 years required 2 years allowed
    Statement of Cash Flows Interest expense, interest income and dividends Flexibility with location of interest expense, interest
    received in Cash from Operations income and dividends
    Each interim period is an integral part of fiscal year Each interim period is a stand-alone period
    Quarterly/Interim Reports
    MD&A required MD&A not required
    Not allowed directly on the financial statements
    Allowed on the financial statements themselves
    Non-standardized metrics themselves
    Alternative EPS prohibited Alternative EPS allowed
    Recognition or Classification
    Development Costs Expensed, exceptions include software and movies Capitalized when specific conditions are met
    All Deferred Tax Assets recognized, offset with a
    Income Taxes Deferred Tax Assets only recognized when probable
    Valuation Allowance
    Investment Property Not separate from PPE A separate category
    Biological Assets Included in Inventory Measured at fair value, separate from Inventory
    Categories for operating and finance leases on
    Leases Single category on balance sheet
    balance sheet
    Recognized when >50% likely, measurement methods
    Recognized when >75% likely, measurement methods
    Contingent Liabilities differ
    differ
    Referred to as Provisions
    Measurement
    LIFO allowed with other methods LIFO not allowed
    Inventory Same method required with Inventory of similar
    Method can vary across Inventory groups
    nature
    Historical cost Fair value allowed
    Fixed Assets Separate depreciation of separable components
    Cost segregations allowed, not required
    required
    Intangible Assets Historical cost Fair value allowed
    Key Similarities in Recent Changes
    ASC 606 effective 2018 IFRS 15 effective 2018
    Converged standard that focuses on a conceptual Converged standard that focuses on a conceptual
    Revenue framework using a 5-step process for recognizing framework using a 5-step process for recognizing
    revenue. revenue.
    Minor differences in implementation and updates. Minor differences in implementation and updates.
    ASC 842 effective 2019.
    IFRS 16 effective 2019.
    Leases over 12 months recognized as Right of Use
    Leases over 12 months recognized as Right of Use
    Leases Assets on Balance Sheet with corresponding Lease
    Assets on Balance Sheet with corresponding Lease
    Liabilities. Distinguishes between Operating and
    Liabilities. No Finance/Operating Lease categories.
    Finance Leases.
    ASU 2015-03 No change
    Debt Issuance Costs Debt issuance costs are now netted against the Debt issuance costs are netted against the
    outstanding debt outstanding debt
    This is only a general summary of some main areas. Consult applicable standards for specific information and guidance.

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