标题: IFRS vs GAAP (this is what i have in FSA niraj) [打印本页] 作者: malbec 时间: 2011-7-11 19:13 标题: IFRS vs GAAP (this is what i have in FSA niraj)
Joint ventures- IFRS you can use either prop consolidation or equity, GAAP only allows equity.
IFRS: I have on one of my cards: forex G/L on AFS securities recognized on the I/S and on another card: IFRS can elect to report unrealized G/L as comprehensive income in SE or on I/S. (someone verify this for me)
GAAP: entire unrealized G/L recognized in equity
Impairments-
GAAP: after an impairment, recovery in future can't be written up
IFRS: subsequent recoveries are permitted
Pooling- not allowed GAAP or IFRS
Bargain Purchase- which is when purchase px is less than fair value of the target's identifiable assets
GAAP: acquirer must reassess the net assets and the excess of purchase px reduces certain noncurrent assets on a pro-rata basis. any remainder is recognized on I/S as extraordinary gain
IFRS: acquirer reassesses target's net assets also. any excess that remains is recognized on the I/S as part of continuing operations
VIE's-
IFRS: sponsoring entity must consolidate if it controls "in substance" the SPE. indications of control include sponsoring entity that:
1. benefits from SPE's activity
2. has decision making rightsto receive benefits from SPE
3. absorbs risks and rewards of SPE
4. has a residual interest in the SPE
GAAP: if it's a VIE, it must be consolidated. VIE if ANY of the following conditions are met:
1. insufficient at risk equity investment (less than 10%)
2. shareholders lack decision making rights (non voting stock)
3. shareholders don't absorb losses
4. shareholders don't receive residual benefits
(sounds pretty similar?)
IFRS reconciliation of funded status and net pension asset/liability
(required disclosure in footnotes)
Funded Status (fair value of plan assets - PBO)
+/- unrecognized deferred (gains) losses
+/- unrecognized past service cost
+/- unrecognized transition (asset) liability
= net pension asset (liability) reported on B/S
GAAP- fair value - PBO
I have a notecard that says: GAAP more flexible in accounting for tax benefit shortfalls and valuing awards with graded vesting.
umm... yeah.
Hyperinflationary environment-
GAAP- use temporal
IFRS- restate for inflation and translate with AC
please add more anyone.作者: economicz 时间: 2011-7-11 19:13
Goodwill Impairment (for Intercorporate Investments) writedown calculation has a difference between US GAAP and IFRS.
Two step method in US GAAP:
Step 1: Is the Fair Value < Book Value? Yes then there is Impairment.
Step 2: Recalculate the goodwill based on the new numbers - FairValue, Bookvalue.
Impairment Amount = Old goodwill - New Goodwill.
One Step in IFRS:
FV - BookValue is the Loss that would be written off in Goodwill.
CP作者: busterbluth 时间: 2011-7-11 19:13
Goodwill - Assess goodwill based on the whole reporting unit, but calculate the actual charge only on focused specifics.作者: random_walker47 时间: 2011-7-11 19:13
*bump*
if IFRS is the norm now (so says the may newsletter), i guess i ought to learn it? anyone else with some differences we might not have here? is there some magical page in secret sauce with all of the differences?作者: ningning1984 时间: 2011-7-11 19:13
Try pg 53 in secret sauce.
Time to do some flashcards. But before gotta finish the qbank quiz I've been taking. Later all.作者: kickthatcfa 时间: 2011-7-11 19:13
IFRS: No LIFO
GAAP: LIFO preferred作者: Pegasus2008 时间: 2011-7-11 19:13
QSPV not allowed under IFRS. Allowed under GAAP to consolidate financial assets.作者: Otabek 时间: 2011-7-11 19:13
rellison - it is QSPE - and that is already included above... (cfaboston's post) for Qualifying SPE.
