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50 Cards in this Set
- Front
- Back
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Discontinued ops
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Individual assets and liabilities have to be remeasured and G/L recognized
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Extraordinary items
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Extraordinary items are not allowed
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Accounting changes
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Cumulative adjustment is made at the beginning of the prior period must present 3 BS
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Change in accounting entity
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Does not exist in IFRS
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Related party disclosures
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Key management compensation arrangements are required to be disclosed
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Notes to the financial statements
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There must be an actual statement that says that everything is in compliance - and ALL of them
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Segment reporting
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Includes liabilities in segment reporting if they are reported to CFO regularly
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Intangible costs
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Research costs related to internally developed intangible assets must be expensed, but development costs may be capitalized
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R&D
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Research must be expensed
Development costs can be capitalized |
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Computer software development costs
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No specific IFRS guidance, just follow regular intangibles that are internally developed
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Impairment of Intangible Assets other than Goodwill
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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.
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US GAAP Finite life intangibles
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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.
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US GAAP Indefinite life intangibles
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One step approach compared CV to FV = impairment. Reversal not permitted unless held for sale.
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Goodwill impairment IFRS
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GW impairment calculated using the one step approach at the cash generating unit level, allocate to GW first
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Goodwill US GAAP
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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.
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Construction contracts
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Percentage of completion method required unless hard to estimate outcome, then cost recovery. Completed contract NOT allowed.
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Construction contracts US
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Percentage of completion and cost recovery methods allowed
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Nonmonetary exchanges
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Similar assets have no commercial substance, no gain, and losses are recognized
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Nonmonetary exchanges US
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Exchanges that lack commercial substance, gain only recognized when boot is received and not if cash is paid, losses always recognized
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AFS
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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
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Impairment losses on marketable securities
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impairment losses are recognized in earnings and the security is written down
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Consolidation with differing year ends
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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
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Acquisition method
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NCI can be calculated with partial or full goodwill methods
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Inventory cost
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Lower of cost or NRV, reversal of write downs is allowed for subsequent recoveries
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Inventory cost US
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Inventory reported at lower of cost or market
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Inventory cost flow assumptions
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LIFO is not allowed
Method used to account for inventory should match the actual flow |
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Fixed asset valuation
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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 |
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Investment property only IFRS
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Fair value model - gains and losses on IS and it is not depreciated
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IFRS depreciation
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component depreciation is required
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Fixed asset impairment
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IFRS one step test just like other impairment, and US two step approach just like finite life intangibles
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Leases classification
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Operating or finance
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Finance lease criteria
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Both lessee and lessor classify lease as a finance lease if it transfers all risks and rewards of ownership to the lessee
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US capital lease criteria
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Ownership transfer
Written bargain purchase option 90% or more lease payment 75% life of asset |
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Initial direct costs of lease
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IFRS: costs are added to the amount recognized as a finance lease asset
US: costs are expensed when incurred |
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Sale-leaseback transactions
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IFRS: operating gain is recognized and capital is deferred
US: does not depend whether operating or capital, more on the amount of payments |
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Bond issue costs
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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 |
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Bond discount/premium amortization
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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 |
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Convertible bonds
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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
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Convertible bonds - US
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No separate recognitiion given to the conversion feature under US
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Periodic pension expense
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IFRS: report them separately on the income statement
US: put them all together |
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Prior service cost/past service cost
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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 |
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Gains and losses of pensions
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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 |
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Valuation allowances
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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 |
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Uncertain tax positions
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IFRS: not addressed
US: recognition and measurement of the tax benefit |
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Rates to use in deferred taxes
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IFRS: enacted or substantively enacted
US: only enacted |
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Status of Deferred Taxes
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IFRS: all are noncrrent
US: depending on the classification of the related item, and net them |
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Treasury stock
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IFRS: cost method
US: cost or par value method |
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SCF
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IFRS: when the direct method is used, not required to reconcile
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SCF classficiation
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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 |
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Financial Instruments
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IFRS must disclose all risks arising, while US only has to do risk from concentrations of credit risk.
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