Ifrs, Us and Prc Gaap

1565 Words Mar 16th, 2012 7 Pages
. What is PRC GAAP? | Generally accepted accounting principles ("GAAP") of the People’s Republic of China ("PRC") come from a number of sources, majority of which represent the laws and regulations issued by the Ministry of Finance ("MOF"), and, listed company disclosures issued by the China Securities Regulatory Commission ("CSRC"). | | 2. What is IFRS? | International Financial Reporting Standards ("IFRS"), often known the original International Accounting Standards ("IAS"), are a set of accounting standards. They are issued by the International Accounting Standards Board ("IASB"), an independent, international organization supported by the professional accountancy bodies. The objective is to achieve uniformity and …show more content…
| Measured at fair value. If classified as held for trading, value changes are recognised in net profit or loss. If classified as available for sale, measured at fair value with value changes recognised either (a) in income statement or (b) in equity until the investment is sold. | Same as IFRS | | | 5. What are the main differences between PRC GAAP, IFRS and US GAAP?⑵ | Topic | PRC GAAP | IAS/IFRS | US GAAP | Dividends received on short-term investments | Reduce the carrying amount of the investment when received. | Recognised as revenue when received. | Similar to IFRS | Inventory | Use of LIFO permitted. Reversal is required for subsequent increase of value of previous write-downs. | LIFO is prohibited. Reversal of write down is required. | Use of LIFO permitted. Reversal of write-down is prohibited. | Long-term investments in equity securities | Measured at cost less impairment, with a write-down recognised in income statement. | Measured at fair value with value changes recognised either (a) in income statement or (b) in equity until the investment is sold. | Same as IFRS | Long-term investments in debt securities | Measured at amortised cost subject to impairment. | If classified as held to maturity, measured at amortised cost subject to impairment. If classified as available for sale, measured at fair value with value changes recognised either (a) in income statement or (b) in equity until the

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