Ch 4 IFRS Insights Flashcards Preview

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Flashcards in Ch 4 IFRS Insights Deck (4):

3 Similarities btw income statement of GAAP and IFRS?

1 indicate amount of net income attributable to
Noncontrolling interest

2 same presentation guidelines for discontinued operations

3 both have items that are recognized in equity as
comprehensive income but don't affect net income


5 differences of IFRS Income statement

1 IFRS doesn't mention a single or multiple step approach
And bans extraordinary items

2 under IFRS companies must classify expenses by nature
Or function

3 IFRS identifies minimum information requirements for
Income statement

4 IFRS doesn't define key measures like income from

5 under IFRS Revaluation of property, plant, equipment
And intangible assets is permitted and reported as
Other comprehensive income


Nature of expense method

Simple to apply because allocation of expense to
Different functions aren't necessary


Function of expense method

Identifies major cost drivers of company
And helps users assess whether these amounts are
Appropriate for revenue generated