IFRS .IFRS and US GAAP Comparison Essay Example | Topics and Well Written Essays - 250 words

IFRS .IFRS and US GAAP Comparison - Essay ExampleFirstly, income description captions are not indispensable in the case of US GAAP while IFRS prescribes minimum caption in income statement. In addition, the US GAAP treatment allows either single bill or multiple steps format for income statement captions. According to the US GAAP treatment, classification of extraordinary items is permitted under certain circumstances and it can too be segregated within operating income in contrast, IFRS bans classification of unusual items although it permits segregation of such items (Deloitte). The US GAAP provides a broader definition for discontinued operations while IFRS sets a narrow definition. Under US GAAP, restructuring costs are recognized only when it becomes necessary but IFRS recognizes restructuring costs when it is announced.Limited guidance on offsetting of assets and liabilities is a characteristic feature of US GAAP however, IFRS insists specific guidance on offsetting of asse ts and liabilities. In case of IFRS, financial positions classified statement is essential unless liquidity ordering is more meaningful. In contrast, such a statement is not required under US GAAP. Exclusion of long-term debt from sure liabilities is a specific feature of IFRS. The US GAAP treatment refinances the exclusion of long term debt. The IFRS treatment states the minority interests as a component of comeliness while US GAAP guidelines restrict the presentation of minority interests as equity (IFRSs and US GAAP.). As per the US GAAP balance rag format, entries are presented as total assets balancing to total liabilities in addition to shareholders equity. In contrast, IFRS entries include current and non-current assets and current and non-current liabilities. While US GAAP presents items on the basis of decreasing order of liquidity, the IFRS presents the items in the increasing order.IFRSs and US GAAP A pocket comparison. An IAS plus Guide Audit, Tax, Consulting and Fina ncial