Differences Between Accounting Treatment Of Pp & E Under Us Gaap And Ifrs

Krishnan, S., & Lin, P., C.M.A. (2012). Inventory valuation under IFRS and GAAP. Strategic Finance, 93(9), 51-58. Retrieved from http://search.proquest.com/docview/1016754559?accountid=458

A contingent liability is an obligation that has a probability of occurring in the future. These items will not be included in financial statements, but should be disclosed within the notes. For example, imagine an oil company that was involved in an accidental oil spill in the Mississippi River. An example of a contingent liability would be potential fines imposed by the Union for environmental violations. The company may not know the extent of the fines yet, but they

For intangible assets obtained in a business combination, both GAAPs will recognize an intangible asset as a separate entity from goodwill. Amortization can be applied to limited life intangibles under both GAAPs, however, amortization is not applied to indefinite life intangibles and goodwill because they are assessed for impairment annually. Accounting for impairments of assets held for disposal are handled similarly under both GAAPs.

Differences Between GAAP and IFRS and Implications of Potential Convergence - Boundless Open Textbook. (n.d.). Retrieved February 5, 2015, from https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/introduction-to-accounting-1/conventions-and-standards-21/differences-between-gaap-and-ifrs-and-implications-of-potential-convergence-131-7049/

In both Canadian GAAP and IFRS the necessities for charging devaluation on property, plant and

Give two examples of where historical cost information is reported in P&G’s financial statements and related

Property, Plant & Equipment (PPE) (AASB 116): “Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item including borrowing costs that are related to the

|1.IFRS IAS 41, Para 10-33 |Fair value with value changes recognized in profit or loss. |

Costs incurred during the planning stage should be recognized as an expense when incurred. Application and infrastructure development, graphical design, and content development stages are closely related to the development phase of IAS 38.57 which states, “Development costs are capitalized only after technical and commercial feasibility of the asset for sale or use have been established.” Expenditures induced during the stated stages should be covered in the total cost the website and recognized as an intangible asset when the cost can be instantly allocated on a reliable and consistent basis. Costs incurred in the content development stage should be recognized as expenses as incurred in accordance with IAS 38.69. The following are some costs identified by IAS 38.69 to be expensed: start-up, pre-opening, pre-operating, training, and relocation costs. Expenses incurred in the operating stage are treated the same way.

Like Canadian GAAP necessities under the IFRS cost system, an asset of property, plant and equipment ought to be conveyed at its cost less any aggregated

There are a number of differences between GAAP and IFRS in the area of accounting for pensions and other post-retirement and postemployment benefits (Deloitte, 2004). Some differences will result in less earnings volatility, while others will result in more. Under IFRS, a company can adopt a policy that would allow recognition of gains/losses in other comprehensive income. Gains/losses treated in accordance with this election would not be subsequently recycled through the income statement. This election generally reduces the volatility of pension expense recorded within the company’s income statement because gains/losses would be recorded only within other comprehensive income. Other policy elections available under IFRS for gain/loss recognition are similar to those under GAAP. Under IFRS, companies are not required to present the full-funded status of the postemployment benefit plans on the balance sheet. However, companies are required to disclose the full-funded status within the notes to the financial statements. GAAP permits the use of a calculated asset value to spread market movements over periods up to five years in the determination of expected returns of plan assets. IFRS prohibits the use of calculated value and required that the actual fair value of plan assets at each measurement date be used. Differences between GAAP and

The treatment required under IFRS is that it provides specialised extractive industry guidance only in respect of expenditure incurred on exploration for and evaluation of (E&E) mineral resources after obtaining a legal right to explore and before achieving technical feasibility and commercial viability. There is no industry-specific guidance on the recognition or measurements of pre-exploration expenditure or development expenditure. Pre-E&E expenditure is generally expensed as it is incurred. Entities identify and account for pre-exploration expenditure, E&E expenditure and development expenditure separately. Each type of E&E cost may be expensed as it is incurred or capitalised, in accordance with the entity’s selected accounting policy. Capitalised E&E costs are classified as either tangible and intangible assets, according to their nature. The test for recoverability of E&E assets can combine several cash-generating units, as long as the combination is not larger than an operating segment. Stripping costs incurred during the production phase of surface mining are included in the cost of inventory extracted during the period, if appropriate, or are capitalised as a non-current asset if they

“When a voluntary change in accounting policy has an effect on the current period or any prior period, would have an effect on that period except that it is impracticable to determine the amount of the adjustment, or might have an effect on future periods, an entity shall disclose:

The US Generally Accepted Accounting Principles (GAAP) is a set of international accounting rules which originated from the United States. US GAAP can be defined as a set of accounting principles, standards and procedures that companies use to compile their financial statements (Elliott & Elliott, 2008). The International Financial Reporting Standards (IFRS) on the other hand are accounting rules originating from the United Kingdom. International Financial Reporting Standards (IFRS) are a set of accounting rules designed with a common global language for business affairs so that financial accounts of companies are understandable and comparable across international boundaries (Devinney, Pedersen & Tihanyi, 2010).

This is the required method of accounting, according to the matching principle. This principle states that to record the entire expense the first year would skew the results of operations over the asset