What is the difference between IFRS and US GAAP?
What is the difference between IFRS and US GAAP?
The treatment of intangible assets such as research and goodwill also feature when differentiating between IFRS vs US GAAP standards. Under IFRS, intangible assets are only recognized if they will have a future economic benefit. In such a way, the asset can be assessed and given a monetary value.
What does IFRS mean?
IFRSs – With respect to revenue recognition, the IFRS framework is general in nature in their requirements, if compared to the GAAP. IFRS, on the other hand, is governed by four general interpretations and two primary standards.
What is the difference between LIFO and IFRS?
One of the key differences between these two accounting standards is the accounting method for inventory costs. Under IFRS, the LIFO (Last in First out) Last-In First-Out (LIFO) The Last-in First-out (LIFO) method of inventory valuation is based on the practice of assets produced or acquired last being the first to be expensed.
Can infrastructure companies defer revenue recognition under GAAP?
For example, an infrastructure company can choose to defer the revenue recognition until a dividend is declared on completion of a project, under GAAP. This can allow them to delay declare any revenue in this period of time, which is specific to infrastructure companies, in which they are adding value.
How is fair value defined under IFRS?
Under both IFRS and U.S. GAAP, fair value is defined the same: “Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
Where is the guidance related to fair value measurements in GAAP?
The guidance related to fair value measurements in U.S. GAAP is included in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement. In IFRS, the guidance related to fair value measurements is contained in IFRS 13, Fair Value Measurement.
What is the purpose of the IFRS?
IFRS Standards IFRS standards are International Financial Reporting Standards (IFRS) that consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements. They are designed to maintain credibility and transparency in the financial world
