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Flashcards in GAAP VS IFRS Deck (22)
1

gaap acceptable inventory methods

lifo, fifo, weighted average, specific identification

2

ifrs acceptable inventory methods

fifo, weighted average, specific identification

NO LIFO

3

describe write downs and write ups in gaap

write downs of inventory to lower of cost or market create a new cost basis that cannot be reversed

4

describe write downs and write ups in ifrs

previously recognized write downs may be reversed up to the amount of previous write down if reason for impairment no longer exists

5

gaap requires expense of development costs except...

computer software developed for external use are capitalized once technological feasibility established

6

ifrs and development costs

allows all development costs to be capitalized when technical AND economic (commercial) feasibility of a project can be demonstrated

7

describe ifrs ruling on construction contracts

accounted for using the percentage of completion method (if certain criteria are met). otherwise, revenue recognition limited to recoverable costs incurred (recognize rev and exp, but not GP til costs recovered)

8

describe gaap ruling on construction contracts

accounted for using the percentage of completion method (if certain criteria are met). otherwise, use completed contract method (no revs or exp or GP recognized til complete)

9

does ifrs or gaap allow FS to be adjusted for a stock dividend declared after the BS date?

ifrs does not, gaap does

10

does ifrs allow revaluation of intangible assets? how?

fuck yes it does if there's an active market for the asset and it isn't goodwill. depreciate the asset for the year, compare new CV to FV. send it to revaluation surplus.

11

does gaap allow revaluation of intangible assets? how?

hail naw it dont

12

bank overdrafts


GAAP: treated as liabilities

IFRS: subtracted from cash

13

5 characteristics for revenue recognition under IFRS

1.probable future benefit
2.measurable revenue
3.measurable cost
4.significant risk and reward of ownership is transferred
5.managerial involvement is not retained

14

impairment loss under IFRS

it is recoverable

15

GAAP Comprehensive Income

All changes in equity other than "owner" sources.
DENT
+Derivative Cash Flow Hedge
+Excess adjustment of Pension PBO and FV of plan assets at year-end
+Net unrealized gains or losses on available-for-sale securities
+Translation adjustments for foreign currency

16

GAAP Comprehensive income elements

REV, EXP, Gains, Losses

17

Notes to the FS under GAAP

+Summary of significant accounting policies
+Summary of significant assumptions (for prospective FS)
+Other Notes

18

GAAP Conservatism Principle

Losses should be recognized immediately, gains should be recognized according to the revenue recognition principle.

19


Tangible and Intangible Assets:

Basis


GAAP:

Historical Cost


IFRS:

Historical or Revalued Amt (except Goodwill)

20


Tangible and Intangible Assets

Reviews for Impairment


GAAP:

When circumstances indicate that CV Amt may not be recoverable

IFRS:

Performed at EACH reporting date

21


Tangible and Intangible Assets

Reversal of Impairment


GAAP:

NOT ALLOWED for held for use


IFRS:

ALLOWED when change

in the economic conditions

OR

in the way the asset is used

22


Tangibles and Intangibles Assets

Depreciation


GAAP:

Component Depreciation allowed

(seldom use)

IFRS:

Component Depreciation REQUIRED