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Unformatted text preview: DILASHA DIXIT IFRS Chap 17 March 29, 2012 IFRS17.2. Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for investments. Subject US GAAP IFRS Schedule of investments Difference GAAP classifies investments as trading, available for sale (both debt and equity investments) and held-to- maturity (only for debt investments). GAAP does not permit the reversal of an impairment charge related to available ‐ for ‐ sale debt and equity investments. IFRS uses held-for-collection (debt investments), trading (both debt and equity investments), and non-trading equity investment classifications. IFRS allows reversals of impairments of held ‐ for ‐ collection investments. Similarity Both GAAP and IFRS use the same test to determine whether the equity method of accounting should be used- that is significant influence with a general guide of over 20 percent ownership....
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- Spring '12
- Finance, Value investing, Capital accumulation