ifrs and us gaap
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TRANSCRIPT
IFRS v/s US GAAP
Presented by:
Anand Shivraman-03
Ananth Venkitraman-04
Ashwin Govindankutty- 05
Anish Skaria-09
Ann Grace Chettiar-10
Ashwini Pisharody-34
IFRS
An independent, not-for-profit private sector organisation working in the public interest.
Its principal objectives are: • to develop an international financial reporting standards (IFRSs)
through its standard-setting body, the IASB• to promote the its use and application.• to meet the needs of emerging economies and SME’s• to promote and facilitate adoption of IFRSs
GAAP
• Financial Accounting Standards Board (FASB)
• the Governmental Accounting Standards Board (GASB)
• Federal Accounting Standards Advisory Board (FASAB)
• Moving from US GAAP to IFRS
• IFRS - "principles based“ • U.S. GAAP - "rules based.”
Differences
1) Intangibles
2) Inventory Costs
3) Write downs
Issue IFRS US GAAP
Documents included in the financial statements
•Balance Sheet•Income statement•Changes in equity•Cash flow statement•Footnotes
•Balance sheet•Income statement•Statement of comprehensive income•Changes in equity•Cash flow statement•Footnotes
Balance sheet •Long Term Assets and Liabilities are listed first on IFRS statements.• Requires separation of current and noncurrent assets and liabilities
•On GAAP Statements, starts with current assets and liabilities. •recommends separation of current and noncurrent assets and liabilities
Issue IFRS US GAAP
Deferred taxes Shown as separate line items on the balance sheet
Included with assets and liabilities
Minority interests Included in equity as a separate line item
Included in liabilities as a separate line item
Extraordinary items Prohibited infrequent
Bank overdrafts May be included in cash if used in cash management
Charged as a financing activity
IFRS GAAP
Use of cost formula Same Not same
Classification:• Interest paid• Interest received
•Operating/ investing•Operating/ financing
operating
Basis of measurement
Revalued / historic cost
Historic cost
Comparative Information
References http://www.investopedia.com http://www.readyratios.com http://www.readyratios.com/reference/accounting/us_gaap.html http://www.ey.com/Publication/vwLUAssets/US_GAAP_v_IFRS:_
The_Basics/$FILE/US%20GAAP%20v%20IFRS%20Dec%202011.pdf
http://www.dummies.com/how-to/content/comparing-us-gaap-and-ifrs-accounting-systems.html
http://www.ifrs.org/Pages/default.aspx
Thank you