Ch 13 IFRS Insights Flashcards Preview

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Flashcards in Ch 13 IFRS Insights Deck (15):
0

IFRS presentation of current liabilities and noncurrent liabilities

Presents current liabilities in order of liquidity

Many companies present non current liabilities before
Current liabilities

1

IFRS and GAAP definition of liabilities, classification of liabilities

The same under both

Both GAAP and IFRS classify liabilities as current and
non current

2

IFRS VS GAAP: measurement of provision related to contingency

IFRS: discloses midpoint in range used to measure liability

GAAP: minimum amount in range is used

3

Both IFRS and GAAP prohibit...

Recognition of liabilities for future losses

4

IFRS VS GAAP restructuring liabity

IFRS permits recognition of restructuring liability

GAAP has additional criteria before restructuring liability
Can be established

5

IFRS VS GAAP asset retirement obligations

Similar, recognition of ARO is more stringent under GAAP:

ARO isn't recognized unless there is present legal obligation
And fair value can be reasonably estimated

6

IFRS VS GAAP: short term obligations expected to be refinanced can be classified as non current if the refinancing is completed by...

The financial statement date under IFRS

the date the financial statements are issued under GAAP

7

Provisions

IFRS term for estimated liabilities

8

GAAP VS IFRS contingent liabilities

Not recognized in financial statements under IFRS

Sometimes recognized under GAAP

9

Onerous contracts

Contracts where unavoidable costs of meeting obligations
Exceed economic benefits expected to be received

10

Contingent asset

Asset that arises for, past events and whose existence
Will be confirmed by occurrence or non occurrence of
Uncertain future events

11

Virtually certain

Probability of 90% occurrence

Report as asset

12

Probable

51-90% probable

Disclose

13

Possible but not probable

5-50% chance

No disclosure required

14

Remote

Less than 5%

No disclosure required