Ifrs and us gaap

Summary of similarities and differences - IFRS & US GAAP

|SUBJECT |IFRS |US GAAP |
|Accounting framework |
|Historical cost |Generally useshistorical cost, but intangible|No revaluations except for certain types of securities and|
| |assets, property plant and equipment (PPE) and|derivatives to fair value. |
| |investment property may be revalued to fair | |
||value. Derivatives, biological assets and | |
| |certain securities are revalued to fair value.| |
|Fair presentation override |Entities may, in rare cases, override the |Similar to IFRS; rarely used in practice.|
| |standards where essential to give a fair | |
| |presentation. | |
|First-time adoption of |Full retrospective application of all IFRSs |First-time adoption of USGAAP requires retrospective |
|accounting frameworks |effective at the reporting date for an |application. |
| |entity’s first IFRS financial statements, with| |
| |some optional exemptions and limited mandatory||
| |exceptions. | |
|Financial statements |
|Components of financial |Two years’ balancesheets, income statements, |Similar to IFRS, except three years required for SEC |
|statements |cash flow statements, changes in equity and |registrants (public companies) for all statements except |
| |accounting policies and notes. |balance sheet. Specific accommodations in certain |
|| |circumstances for foreign private issuers that may offer |
| | |relief from the three-year requirement. |
|Balance sheet |Does not prescribe a particular format. A |Entities may present either a classified ornon-classified|
| |liquidity presentation of assets and |balance sheet. Items on the face of the balance sheet are |
| |liabilities is used, instead of a |generally presented in decreasing order of liquidity. |
| |current/non-current presentation, only when a |Public companies should followSEC regulations. |
| |liquidity presentation provides more relevant | |
| |and reliable information. Certain items are | |
| |presented on the face of the balance sheet. |...