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50 Cards in this Set

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Discontinued ops
Individual assets and liabilities have to be remeasured and G/L recognized
Extraordinary items
Extraordinary items are not allowed
Accounting changes
Cumulative adjustment is made at the beginning of the prior period must present 3 BS
Change in accounting entity
Does not exist in IFRS
Related party disclosures
Key management compensation arrangements are required to be disclosed
Notes to the financial statements
There must be an actual statement that says that everything is in compliance - and ALL of them
Segment reporting
Includes liabilities in segment reporting if they are reported to CFO regularly
Intangible costs
Research costs related to internally developed intangible assets must be expensed, but development costs may be capitalized
R&D
Research must be expensed

Development costs can be capitalized
Computer software development costs
No specific IFRS guidance, just follow regular intangibles that are internally developed
Impairment of Intangible Assets other than Goodwill
Impairment calculated using a one-step approahc where CV is compared to the assets recoverable amount = greater of the assets FV - costs to sell and the assets value in use (PV of CF). Reversal permitted.
US GAAP Finite life intangibles
Two step model. First compare CV to undiscounted cash flows, and if it is lower then impairment amount is FV-CV. Reversal not permitted unless held for sale.
US GAAP Indefinite life intangibles
One step approach compared CV to FV = impairment. Reversal not permitted unless held for sale.
Goodwill impairment IFRS
GW impairment calculated using the one step approach at the cash generating unit level, allocate to GW first
Goodwill US GAAP
Two step test at the reporting unit level, first determine the fair value of the reporting unit and if it less than the CV on the BS then there has been an impairment of GW.
Construction contracts
Percentage of completion method required unless hard to estimate outcome, then cost recovery. Completed contract NOT allowed.
Construction contracts US
Percentage of completion and cost recovery methods allowed
Nonmonetary exchanges
Similar assets have no commercial substance, no gain, and losses are recognized
Nonmonetary exchanges US
Exchanges that lack commercial substance, gain only recognized when boot is received and not if cash is paid, losses always recognized
AFS
UH gains and losses are reported in OCI except for FX G/L on AFS debt securities which are reported directly on the I/S
Impairment losses on marketable securities
impairment losses are recognized in earnings and the security is written down
Consolidation with differing year ends
Must account for the changes that occurred between the two year ends. In the US, it just requires disclosure, not an actual adjustment like in IFRS
Acquisition method
NCI can be calculated with partial or full goodwill methods
Inventory cost
Lower of cost or NRV, reversal of write downs is allowed for subsequent recoveries
Inventory cost US
Inventory reported at lower of cost or market
Inventory cost flow assumptions
LIFO is not allowed

Method used to account for inventory should match the actual flow
Fixed asset valuation
Cost model: CV= Hist cost-ad-impairment

Revaluation model: CV= FV on revaluation date - sub AD-sub impairment

Revaluation losses reported on the IS

Revaluation gains reported in OCI as revaulation surprlus
Investment property only IFRS
Fair value model - gains and losses on IS and it is not depreciated
IFRS depreciation
component depreciation is required
Fixed asset impairment
IFRS one step test just like other impairment, and US two step approach just like finite life intangibles
Leases classification
Operating or finance
Finance lease criteria
Both lessee and lessor classify lease as a finance lease if it transfers all risks and rewards of ownership to the lessee
US capital lease criteria
Ownership transfer
Written bargain purchase option
90% or more lease payment
75% life of asset
Initial direct costs of lease
IFRS: costs are added to the amount recognized as a finance lease asset

US: costs are expensed when incurred
Sale-leaseback transactions
IFRS: operating gain is recognized and capital is deferred

US: does not depend whether operating or capital, more on the amount of payments
Bond issue costs
Deducted from the CV of the liability and amortized using the effective interest method

US: recorded as an asset and amortized using the SL method
Bond discount/premium amortization
Effective interest method is required, cannot use SL method.

US: SL can be used if it's not that much different than the effective int method
Convertible bonds
A liability and equity component should be recognized, bond at FV and the difference between actual cash and the bond is what goes to the equity feature of the convertible
Convertible bonds - US
No separate recognitiion given to the conversion feature under US
Periodic pension expense
IFRS: report them separately on the income statement

US: put them all together
Prior service cost/past service cost
Do NOT put past service cost into OCI, it just increases the obligation

US: PSC increases the PBO and OCI in ther period incurred and then amortized over the remaining years of service
Gains and losses of pensions
IFRS: gains and losses are remeasurements of the DBO and are reported in OCI but are not amortized into IS

US: can either recognize into the IS or in OCI and amortize using corridor approach
Valuation allowances
valuation allowances are not allowed under IFRS.

US: valuation allowance is recognized when it is more likely than not that part or all of the deferred tax asset will not be realized
Uncertain tax positions
IFRS: not addressed

US: recognition and measurement of the tax benefit
Rates to use in deferred taxes
IFRS: enacted or substantively enacted

US: only enacted
Status of Deferred Taxes
IFRS: all are noncrrent

US: depending on the classification of the related item, and net them
Treasury stock
IFRS: cost method

US: cost or par value method
SCF
IFRS: when the direct method is used, not required to reconcile
SCF classficiation
Interest/div rec: CFO or CFI

Interest/div paid: CFO or CFF

Taxes paid: CFO, CFI, CFF

US: all of them are CFO except div paid are CFF
Financial Instruments
IFRS must disclose all risks arising, while US only has to do risk from concentrations of credit risk.