Both gaap and ifrs follow the same presentation

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Both GAAP and IFRS follow the same presentation guidelines for discontinued operations, but IFRS defines a discontinued operation more narrowly. Both standard-setters have indicated a willingness to develop a similar definition to be used in the joint project on financial statement presentation. Both GAAP and IFRS have items that are recognized in equity as part of comprehensive income but do not affect net income. Both GAAP and IFRS allow a one statement or two statement approach to preparing the statement of comprehensive income.LO 9 Compare the accounting for income reporting under GAAP and IFRS.RELEVANT FACTS - Similarities
4-60Presentation of the income statement under GAAP follows either a single-step or multiple-step format. IFRS does not mention a single-step or multiple-step approach. In addition, under GAAP, companies must report an item as extraordinary if it is unusual in nature and infrequent in occurrence. Extraordinary items are prohibited under IFRS.Under IFRS, companies must classify expenses by either nature or function. GAAP does not have that requirement, but the SEC requires a functional presentation.IFRS identifies certain minimum items that should be presented on the income statement. GAAP has no minimum information requirements. However, the SEC rules have more rigorous presentation requirements.LO 9 Compare the accounting for income reporting under GAAP and IFRS.RELEVANT FACTS - Differences
4-61IFRS does not define key measures like income from operations. SEC regulations define many key measures and provide requirements and limitations on companies reporting non-GAAP/IFRS information.Under IFRS, revaluation of property, plant, and equipment, and intangible assets is permitted and is reported as other comprehensive income. The effect of this difference is that application of IFRS results in more transactions affecting equity but not net income.LO 9 Compare the accounting for income reporting under GAAP and IFRS.RELEVANT FACTS - Differences
4-62The IASB and FASB are working on a project that would rework the structure of financial statements. One stage of this project will address the issue of how to classify various items in the income statement. A main goal of this new approach is to provide information that better represents how businesses are run. The FASB and IASB have issued a proposal to require comprehensive income be reported in a combined statement of comprehensive income. This approach draws attention away from just one number—net income.LO 9 Compare the accounting for income reporting under GAAP and IFRS.ON THE HORIZON

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