Experienced Writers: how important is IFRS vs GAAP? heart, remember, important, difference

sharksfan

How important are the IFRS vs GAAP rules? is it key to remember ALL the difference by heart?

kd26gioi

thisisbrianly Wrote:
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> When you guys say LIFO/FIFO differences btw IFRS
> and GAAP, are you just referring to knowing that
> LIFO isn't allowed under IFRS and both are allowed
> under GAAP? Or is there something more that
> you're getting at?
>
> Thanks!
>
> Omar Adnan Wrote:
> --------------------------------------------------
> -----
> > I guess if you know differences between them in
> > IFRS and GAAP treatment
> > - LIFO/FIFO
> > - Interest/Dividend treatment in cash flows
> > statements
> > - Revaluation of assets
> > - Construction contracts
> > - Extraordinary items
> > You should be ok .. The last reading on FA (if
> > still the same for June exam) shows an
> excellent
> > summary


YUPPPPP

suyash1989

I agree with this list.

But I would add the following:

Lower or cost or NRV for inventory under IFRS and LCM in US GAAP.
Bunch of stuff in the reading on long-lived assets.

Omar Adnan Wrote:
-------------------------------------------------------
> I guess if you know differences between them in
> IFRS and GAAP treatment
> - LIFO/FIFO
> - Interest/Dividend treatment in cash flows
> statements
> - Revaluation of assets
> - Construction contracts
> - Extraordinary items
> You should be ok .. The last reading on FA (if
> still the same for June exam) shows an excellent
> summary

rgonzalez

I guess if you know differences between them in IFRS and GAAP treatment
- LIFO/FIFO
- Interest/Dividend treatment in cash flows statements
- Revaluation of assets
- Construction contracts
- Extraordinary items
You should be ok .. The last reading on FA (if still the same for June exam) shows an excellent summary

studyn

anish Wrote:
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> my guess is that we need
> to know things which appear again and again in the
> CFA books...

Exactly, knowing all the differences is quite a lot to remember, but there are a few differences that always keep on popping up on exams. CFAI exercises and mock exams gives indeed a good idea. It's been a while since I passed level 1 but the ones I mentioned will probably appear on the exam.

Micholien

Though I haven't taken the test yet and haven't seen any mocks either but my guess is that we need to know things which appear again and again in the CFA books... LIFO FIFO as said above.. revaluation... interest CFs... etc ...

farrukhsadiq

For certain cases you have to know the difference, e.g. the treatment of LIFO/FIFO and allocation of certain items to cash flow categories, e.g. interest to CFO or CFI. Just read through a couple of mock exams and you get an answer to your question.

Daniel1985

it wont make or break your exam results. most of the rules are the same and it is rare for CFAI to test whether or not you remember the difference between the two, instead they test if you know the material.