Question

What differences are there in the terminology used in the two balance sheets? (IFRS vs GAAP)

Answer 1

Description used in the the terminology Arrences between in the two balance sheet on 1 IFRS sheet undes IFRS and of AAP International Standards! mational Financial Reporting 1. Generally andards (IFRS) is an inter- Principa tional standard developed by in the un Internation Accounting landard Board (TASB) US. ТААР Genelally Accepted te canting ipal (GAAP) is only used in the United states GAAP is establish by the Finandal Accounting Standards Board 2. TERS is used in me (FASB) 2. HAAD is not used by in the VS. Countrie alound the world including the EU and many Asian and South American countries. 3, IFRS Tends to be more usta. Llncles 67 AAP 9. Per with the mart FRS ah to beation, ends to be more 3.6AAP Tends to be more Principal based IFRS has rele based under of a Principal that require I require Judgement Judgement Compe Companies may have industry and interpretation to determine specific rules and gue how they are to be applied to follow in a given situation. 4, IFRS allows inventories to be 4. Reversal of earlies write down written down to market llalue is prohibited candles GLAAP If the market value lates increases, IFRS allows the earlies write down to be. reversed Inventory valuation may be more volatile in the smethed. 5 when a condition change, IFRS 5. GAAP takes a more allows impairment losses to conservative approach, and he reversed for all types of Prohibits revesals of impairment losses for all assets oncept goodwill types of assets anal costs to create infang, ble 6, Indes AAAP, development costs are as development expen ante such amit sa larane 6 Internal costs to ment ERC with the developed a are expensed as incurred, with the enuption of internally developed software. Cests, are Capitalize undes IFRS then cestain criteria are met

Description ription of of Differences between used the terminology, in the two balance she lance sheet undes IFRS and GAAP. GAAP is that wilding HARP Reges, such ament, bed 1 GAAP IFRS 7. Undes IFRS, these and assets are initially valued at cost, but can later be sevalued up or down to market valne 7. GAAP Requires that long lived assets, such as building turniture and equipment, be valued at historie Cost- and deprecated appropriately, valued at 8. IFRS includes the distinct 8. GAAP has no such Category of investment Seperate Category Property, which is defined as Property held for rental income or capital appreciation. It is initially measured at cost and can be subsequently de alud to market Valne. 9. IFRS has a de minimus enception 9 GAAP has no such exception. which allows to lessees to GAAP categorically includes enclude nemes for tow valued leases of all intangible Assets. assets from the scope of the lease accounting standard.