IFRS Illustrated Financial Statement

IFRS Illustrated Financial Statement Essay example
College
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Finance & Accounting
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Running Head: IFRS Name: Tutor: Course: Date: University: Differences between IFRSs and US GAAP in the Income Statement There are differences that exist between IFRS and US GAAP and this gets even more pronounced when one considers financial statements presented using either of the standards…

Introduction

US GAAP, on the other hand, requires that post-tax loss/income as well as pre-tax loss/income be presented on the face of an entity’s income statement. IAS 1, which falls under IFRS, prohibits all extraordinary items while under US GAAP it is permitted. Depreciation under IFRS requires that components of the asset being depreciated that have varying benefits are to be depreciated separately while under US GAAP, component method of accounting is just permitted, but it is not a requirement. IFRSs, in revenue recognition have general principles that guide as to whether or not revenue is recognizable. Under US GAAP, on the guidance of revenue recognition, there is a more particular guidance in the determination of whether there should be recognition of a given revenue type. Also under US GAAP, public companies are supposed to utilize the more detailed guidance that the SEC provides. As per IAS 19, which falls under IFRSs the recognition of actuarial losses/gains, IFRS has an accounting policy that helps recognize all actuarial losses/gains under the sub-heading of OCI- Other Comprehensive Income, with a provision that these should be recognized fully with regards to the period that they occur. ...
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