IFRS Flashcards
difference of footnotes between GAAP and IFRS?
more footnote disclosures for explantations, as IFRS is much more principle-based than GAAP
when an impairment loss is recorded and stored, is the impairment restored?
IFRS allows, but GAAP does not – impairment is simply recorded and the carrying value of the impaired assets are changed.
how does IFRS differ from GAAP regarding investment property?
IFRS considers a building or part of that is rented out to be investment property, as it is not used in operations.
when impaired, how do we calculate the impairment loss? carry value - ______?
the recoverable amount. which is equal to higher of PV of discounted future cash flow or net realizable value (sale proceeds - selling fees)
how is statement of difference in equity treated differently gaap vs ifrs?
both gaap and ifrs use the term “retained earnings”
ifrs uses “share capital” instead of “common stock”
ifrs accounts for treasury stock retirement by chargining an excess of purchase price and issue costs to paid in capital.
how is inventory measured in ifrs?
lower of cost or NRV (GAAP: LoCoM)
impairment loss recovery in ifrs?
allowed, BUT GAAP does not allow
how to account for a previous loss in year 1 and then a gain exceed original carry value in year 2 under ifrs?
the gain is recorded to the extent of the loss, and extra is recorded in other comprehensive income.
does IFRS use the term “retaining earnings”
yes, both gaap and ifrs
when an asset is impaired, what account does the amount affect?
“revaluation surplus”
instead of “common stock,” what does ifrs use?
share capital
difference in retiring treasury stock?
charge excess to paid-in-capital
not allow what?
- no LIFO inventory valuation
- no extraordinary items
- no completed project method for LT projects
- no installment method of accounting
- no push-down accounting
- change in principle -> retrospective treatment to 3 BSs: end of current period, end of prior period, beginning prior period
related party diclosures?
ifrs requires disclose of compensation arrangement for related partires
