Ch 15 IFRS Insights

Question 0

IFRS VS GAAP: differences relating to terminology used

Answer 0

Revaluation surplus and presentation of stockholders’ equity

Info

Question 1

IFRS VS GAAP: 2 similarities with stockholders’ equity

Answer 1

1 accounting for issuance of shares and purchase of treasury
Stock are similar under IFRS and GAAP

2 accounting for declaration and payment of dividends and
accounting for stock splits are similar under IFRS and GAAP

Question 2

IFRS VS GAAP: investor groups

Answer 2

In Germany creditors are also the largest stockholders

In US and UK many companies rely on substantial investment
From private investors

Question 3

IFRS VS GAAP: treasury share retirements (3 options company has for GAAP)

Answer 3

GAAP 1 charge excess cost of treasury shares over par value
To retained earnings
2 allocate difference btw paid in capital and retained earnings
3 charge entire amount to paid in capital
IFRS: excess may be charged to paid in capital

Question 4

What is the name for statement of stockholders equity (GAAP) under IFRS?

Answer 4

Statement of changes in equity

Question 5

IFRS VS GAAP: reserve

Answer 5

IFRS: relies on term “reserve” as dumping ground for equity
Instruments

GAAP relies on account accumulated other comprehensive
Income (loss)

Question 6

IFRS VS GAAP: revaluation surplus

Answer 6

Used under IFRS to increase or decrease items such as property,
Plant, equipment, mineral resources and intangible assets

Revaluation surplus not used under GAAP