Inventory :- I F R S allows the use of impairment reversals, while G A A P does not. Last-In First-Out is not an acceptable Inventory method under I F R S, while it remains acceptable under G A A P. Inventory is valued at the lower of cost or market for G A A P and the lower of Cost or net realizable value for I F R S.
Intangible Assets :- I F R S allows for impairment reversal in certain circumstances. G A A P does not.
Goodwill:- Measuring for impairments for I F R S uses a one-step method; G A A P still uses a two-step method.
Property, Plant & Equipment :- I F R S allows for impairment reversal of fixed assets; G A A P does not. I F R S also requires. Companies to view its fixed assets at a more Componentized level; G A A P does not.
Deferred Taxes :- I F R S requires all deferred tax assets to be classified as non current, whereas G A A P allows the split between current and non current. Additionally,under I F R S there is no deferred tax asset set-up if there is a corresponding valuation allowance to offset it. The net deferred tax asset is what is ultimately recognized.
Key remaining differences for liabilities are :-
Definition - G A A P uses the term "Probable," whereas I F R S uses the term " more likely than not." On the surface, they appears to be the same thing. However, People do have varying definitions of these when they are applied in everyday situations.
Debt Covenants - If debt covenant violations are not cured before year - end under I F R S, the corresponding liability is classified as current; under G A A P the company has the ability to obtain a waiver subsequent to year-end, but before the financial statements are issued, in order for the violation to be cured.
Taxes - The concept of "uncertain tax positions" is not a term that is readily defined under I F R S.
Other key differences : -
Research and Development Costs - under I F R S, there is an opportunity to capitalize costs if certain bogeys are met.
Correction of an Error - Under I F R S, the correction of an error is handled in the opening equity of the earliest period presented. Under G A A P, the company would present the prior period financials where the error first occurred.
Going Concern - Under I F R S, the going concern concept is for a period defined as for the foreseeable future; G A A P is generally 1 months from the balance sheet date or 12 months from the date the financial statements are released.
Interim Reporting - Generally, I F R S views each interim period as a discrete period; G A A P views them as a component of the annual report.
Joint Ventures - G A A P uses the equity method for reporting activity under joint ventures; I F R S further breaks down these arrangements into joint ventures and joint operations. Joint ventures would be under the equity method, and joint operations would be under the proportionate consolidation method.
Intangible Assets :- I F R S allows for impairment reversal in certain circumstances. G A A P does not.
Goodwill:- Measuring for impairments for I F R S uses a one-step method; G A A P still uses a two-step method.
Property, Plant & Equipment :- I F R S allows for impairment reversal of fixed assets; G A A P does not. I F R S also requires. Companies to view its fixed assets at a more Componentized level; G A A P does not.
Deferred Taxes :- I F R S requires all deferred tax assets to be classified as non current, whereas G A A P allows the split between current and non current. Additionally,under I F R S there is no deferred tax asset set-up if there is a corresponding valuation allowance to offset it. The net deferred tax asset is what is ultimately recognized.
Key remaining differences for liabilities are :-
Definition - G A A P uses the term "Probable," whereas I F R S uses the term " more likely than not." On the surface, they appears to be the same thing. However, People do have varying definitions of these when they are applied in everyday situations.
Debt Covenants - If debt covenant violations are not cured before year - end under I F R S, the corresponding liability is classified as current; under G A A P the company has the ability to obtain a waiver subsequent to year-end, but before the financial statements are issued, in order for the violation to be cured.
Taxes - The concept of "uncertain tax positions" is not a term that is readily defined under I F R S.
Other key differences : -
Research and Development Costs - under I F R S, there is an opportunity to capitalize costs if certain bogeys are met.
Correction of an Error - Under I F R S, the correction of an error is handled in the opening equity of the earliest period presented. Under G A A P, the company would present the prior period financials where the error first occurred.
Going Concern - Under I F R S, the going concern concept is for a period defined as for the foreseeable future; G A A P is generally 1 months from the balance sheet date or 12 months from the date the financial statements are released.
Interim Reporting - Generally, I F R S views each interim period as a discrete period; G A A P views them as a component of the annual report.
Joint Ventures - G A A P uses the equity method for reporting activity under joint ventures; I F R S further breaks down these arrangements into joint ventures and joint operations. Joint ventures would be under the equity method, and joint operations would be under the proportionate consolidation method.
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