118-IFRS VS U.S. GAAP

118-IFRS VS U.S. GAAP - value permitted Research expensed...

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Econ 118 – International Financial Reporting Standards Selected differences from U.S. GAAP TOPIC Basic approach Comparative statements Balance sheet format Inventory methods PPE valuation R&D Consolidation IFRS Principles based 2,500 pages Judgment (one “e”) Current and prior year Reverse order of liquidity British: often A – L = E FIFO or weighted average (No LIFO) Cost minus accumulated depreciation Revaluation to fair
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Unformatted text preview: value permitted Research expensed Development costs capitalized if certain criteria are met Focus on concept of power, i.e., parents ability to govern sub to obtain benefits U.S. GAAP Rules based 25,000 pages Bright lines SECthree years for all except balance sheet Order of liquidity A = L + E FIFO, LIFO, weighted average Cost minus accumulated depreciation All R&D expensed Focus on majority ownership interest...
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