Ias / Ifrs Vs Us Gaap

The FASB staff indicated that EAs are finite-lived intangible assets based on expected use by the reporting entity. At present, the Company also records the current EAs as intangible assets. However, the SEC staff

Before abandonment the asset should be depreciated so at the time of disposal the carrying value equals the salvage value, but not less than zero. Assets that are distributed to owners or exchanged for a similar productive asset must recognize an impairment loss if the carrying amount exceeds fair value at the time of disposal. Assets that are going to be disposed of by sale must be classified as such and the gain or loss it recognizes must be disclosed on the income statement or in the notes. For assets disposed of by sale, the amount of cash received is compared the asset's book value, which is calculated by subtracting accumulated depreciation from the cost of the asset. A gain is recorded if the proceeds of the sale are greater than book value. A loss is recorded if the proceeds of the sale are less than the book value (FASB, 2014).

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

Intangible Assets were part of the 2006 “memorandum of understanding” between FASB and IASB. Eventually, intangibles assets were cut from the list of changes to be made. In future years the problems will have to be addressed. As far as research and development costs, IAS 38 will likely be fully adopted. One major problem still being faced is the revaluation of intangible assets. Under GAAP, revaluation is strictly prohibited. Under IFRs, revaluation

The last two entries recorded as part of long-term asset are other long-term assets and amortization. Other long-term assets are intangible assets that the company obtained through an acquisition such as “brand names, trademarks, patents, customer relationships, and employee” (Edition, 2011, p. 750). As a replacement for depreciation, when the value of the assets decline over time, it is recorded as an amortization or as impaired charges

There are several differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). The IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based", IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP. As a team me collaborated to answer the following seven questions.

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

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

If an intangible asset is not able to meet either of these criteria, it should be recognized as an expense rather than being capitalized to the statement of profit or loss when it incurs. IAS 38 therefore specifically prohibits recognizing internally generated goodwill, customer lists, publishing titles, brands, start-up costs, mastheads and training costs etc.

AASB 138 defines intangible assets as “identifiable non-monetary assets without physical substance”. Such assets include but are not limited to goodwill, trademarks, patents and research and development. AASB 138 Intangible Assets has been implemented to prescribe the accounting treatment for intangible assets that have not been specifically dealt with in any other standard. Therefore, this standard only applies to intangible assets that have not been previously dealt with. Furthermore, it can be established that this standard is an example of normative accounting theories because the standard prescribes what should be done, rather than predicts what people may do. According to AASB 138 Intangible Assets, in order for an asset to be recognised in the financial statements it must meet specific criteria. The required criterion states that the asset must be identifiable, the entity has control of the asset, future economic benefits are probable and the cost of the asset can be measured reliably.

Intangible assets may be revalued to fair value only if there is an active market.

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).

The purpose of International Accounting Standard 16 (IAS 16) is to outline the treatment for most types of property, plant and equipment. Initially, Property, Plant and Equipment will be realised at its cost and after that it will be measured either using a cost or revaluation model. The asset will be depreciated in such a way that the depreciable amount will be assigned over the period of its useful life on a methodical basis. [IASPlus, n.d]

Identifiable intangible assets with finite lives are carried at cost less accumulated amortization and adjusted for