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Ifrs VS Us Gaap

US GAAP and IFRS have some differences in financial statement presentation and recognition/classification of certain items. US GAAP requires 3 years of income statements and balance sheets while IFRS allows 2 years. IFRS also places non-current assets before current assets on the balance sheet. Both standards have converged on revenue recognition with IFRS 15 and leases with IFRS 16, introducing similar right of use models, but IFRS 16 does not distinguish between operating and finance leases. There are also differences in accounting for items like development costs, deferred taxes, investment property, and biological assets.

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Pratidina Aji Widodo
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416 views1 page

Ifrs VS Us Gaap

US GAAP and IFRS have some differences in financial statement presentation and recognition/classification of certain items. US GAAP requires 3 years of income statements and balance sheets while IFRS allows 2 years. IFRS also places non-current assets before current assets on the balance sheet. Both standards have converged on revenue recognition with IFRS 15 and leases with IFRS 16, introducing similar right of use models, but IFRS 16 does not distinguish between operating and finance leases. There are also differences in accounting for items like development costs, deferred taxes, investment property, and biological assets.

Uploaded by

Pratidina Aji Widodo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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US GAAP vs.

IFRS Cheat Sheet

US GAAP IFRS
Financial Statement Presentation
Income Statement 3 years required 2 years allowed
Balance Sheet Current before non-current Non-current before current
3 years required 2 years allowed
Statement of Cash Flows Interest expense, interest income and dividends Flexibility with location of interest expense, interest
received in Cash from Operations income and dividends
Each interim period is an integral part of fiscal year Each interim period is a stand-alone period
Quarterly/Interim Reports
MD&A required MD&A not required
Not allowed directly on the financial statements
Allowed on the financial statements themselves
Non-standardized metrics themselves
Alternative EPS prohibited Alternative EPS allowed
Recognition or Classification
Development Costs Expensed, exceptions include software and movies Capitalized when specific conditions are met
All Deferred Tax Assets recognized, offset with a
Income Taxes Deferred Tax Assets only recognized when probable
Valuation Allowance
Investment Property Not separate from PPE A separate category
Biological Assets Included in Inventory Measured at fair value, separate from Inventory
Categories for operating and finance leases on
Leases Single category on balance sheet
balance sheet
Recognized when >50% likely, measurement methods
Recognized when >75% likely, measurement methods
Contingent Liabilities differ
differ
Referred to as Provisions
Measurement
LIFO allowed with other methods LIFO not allowed
Inventory Same method required with Inventory of similar
Method can vary across Inventory groups
nature
Historical cost Fair value allowed
Fixed Assets Separate depreciation of separable components
Cost segregations allowed, not required
required
Intangible Assets Historical cost Fair value allowed
Key Similarities in Recent Changes
ASC 606 effective 2018 IFRS 15 effective 2018
Converged standard that focuses on a conceptual Converged standard that focuses on a conceptual
Revenue framework using a 5-step process for recognizing framework using a 5-step process for recognizing
revenue. revenue.
Minor differences in implementation and updates. Minor differences in implementation and updates.
ASC 842 effective 2019.
IFRS 16 effective 2019.
Leases over 12 months recognized as Right of Use
Leases over 12 months recognized as Right of Use
Leases Assets on Balance Sheet with corresponding Lease
Assets on Balance Sheet with corresponding Lease
Liabilities. Distinguishes between Operating and
Liabilities. No Finance/Operating Lease categories.
Finance Leases.
ASU 2015-03 No change
Debt Issuance Costs Debt issuance costs are now netted against the Debt issuance costs are netted against the
outstanding debt outstanding debt
This is only a general summary of some main areas. Consult applicable standards for specific information and guidance.

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