Auditing
- Submitted by: haytham
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- Category: Other
- Date Submitted: 01/16/2011 06:17 PM
- Pages: 6
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1. Provide a summary of differences between the IFRS income statement and a typical income statement prepared using U.S. GAAP.
Summary of differences between the IFRS income statement and a typical income statement prepared using U.S. GAAP:
1. Financial periods presented by:
a) U.S. GAAP
Generally, comparative financial statements are presented. Public companies are required to present two years for the balance sheet and three years for all other financial statements.
b) IFRS
Comparative information must be presented for all amounts reported in the financial statements.
2. Income statement
a) U.S. GAAP
Presentation Presented either as a single- step or multiple step format. Expenditures are usually listed by function.
b) IFRS
IFRS does not prescribe a format, but expenditures are listed either by function or nature.
3. Extraordinary items
a) U.S. GAAP
These are unusual and infrequent. These items are reported separately, but occur rarely.
b) IFRS
This is prohibited.
4. Deferred taxes classified
a) U.S. GAAP
Deferred taxes are presented as current or non-current based on the nature of the related asset or liability.
b) IFRS
Deferred taxes are presented as non-current.
5. Unusual items
a) U.S. GAAP
Individually significant items are reported on the face of the income statement and disclosed in the notes.
b) IFRS
Separate disclosure is required, but may be reported on the income statement.
6. Earnings per share
a) U.S. GAAP
(EPS) Basic and diluted earnings per share for both continuing operations and net income are presented on the face of the income statement. Entities with an extraordinary item also must present EPS data for those line items.
b) IFRS
Basic and diluted earnings per share for both continuing operations and net income are...
Summary of differences between the IFRS income statement and a typical income statement prepared using U.S. GAAP:
1. Financial periods presented by:
a) U.S. GAAP
Generally, comparative financial statements are presented. Public companies are required to present two years for the balance sheet and three years for all other financial statements.
b) IFRS
Comparative information must be presented for all amounts reported in the financial statements.
2. Income statement
a) U.S. GAAP
Presentation Presented either as a single- step or multiple step format. Expenditures are usually listed by function.
b) IFRS
IFRS does not prescribe a format, but expenditures are listed either by function or nature.
3. Extraordinary items
a) U.S. GAAP
These are unusual and infrequent. These items are reported separately, but occur rarely.
b) IFRS
This is prohibited.
4. Deferred taxes classified
a) U.S. GAAP
Deferred taxes are presented as current or non-current based on the nature of the related asset or liability.
b) IFRS
Deferred taxes are presented as non-current.
5. Unusual items
a) U.S. GAAP
Individually significant items are reported on the face of the income statement and disclosed in the notes.
b) IFRS
Separate disclosure is required, but may be reported on the income statement.
6. Earnings per share
a) U.S. GAAP
(EPS) Basic and diluted earnings per share for both continuing operations and net income are presented on the face of the income statement. Entities with an extraordinary item also must present EPS data for those line items.
b) IFRS
Basic and diluted earnings per share for both continuing operations and net income are...