What to do about impaired assets?
Impairment tests are required under both U.S. GAAP and IFRS. They do
vary in procedure. Impairment losses are written off for purposes of
intangibles; reversals are not allowed under U.S. GAAP but are
allowable under IFRS
What are the required financial statements?
The basic required financial statements for both are the same: the
income statement, balance sheet, and statement of cash flows.
However, the financial statements look different quite different when
How about fair value accounting?
Fair value is accounted for in about the same manner under both
systems. However, there are some complex differences between the
two for several different types of financial statement instruments.
What are the differences
What is the difference between U.S. GAAP and IFRS?
One is based more on specific rules (U.S. GAAP), and the other is
based more on broad principles (IFRS).
How tall would the authoritative accounting rules stand for IFRS and
U.S. GAAP, respectively?
What does the balance sheet look like?
On the balance sheet under U.S. GAAP, we usually list current assets
first, then go down the asset side in the order of liquidity. Also, we use
historical cost for purchases and the recording of long-term assets.
How is the statement of cash flow accounted for under both
The statement of cash flows is required under both methods. The
operating, investing and financing sections are required under both,
although the presentation may differ under U.S. GAAP a
How does property, plant, and equipment accounting differ under
U.S. GAAP and IFRS?
For purposes of property, plant, and equipment, interest expense is
capitalized under both methods. Nonmonetary asset exchanges are
accounted for in a similar fashion as w