IFRS v/s US GAAP

Presented by:

Anand Shivraman-03

Ananth Venkitraman-04

Ashwin Govindankutty- 05

Anish Skaria-09

Ann Grace Chettiar-10

Ashwini Pisharody-34

IFRS

An independent, not-for-profit private sector organisation working in the public interest.

Its principal objectives are: • to develop an international financial reporting standards (IFRSs)

through its standard-setting body, the IASB• to promote the its use and application.• to meet the needs of emerging economies and SME’s• to promote and facilitate adoption of IFRSs

GAAP

• Financial Accounting Standards Board (FASB)

• the Governmental Accounting Standards Board (GASB)

• Federal Accounting Standards Advisory Board (FASAB)

• Moving from US GAAP to IFRS  

• IFRS - "principles based“ • U.S. GAAP - "rules based.”

Differences

1) Intangibles

2) Inventory Costs

3) Write downs

Issue IFRS US GAAP

Documents included in the financial statements

•Balance Sheet•Income statement•Changes in equity•Cash flow statement•Footnotes

•Balance sheet•Income statement•Statement of comprehensive income•Changes in equity•Cash flow statement•Footnotes

Balance sheet •Long Term Assets and Liabilities are listed first on IFRS statements.• Requires separation of current and noncurrent assets and liabilities

•On GAAP Statements, starts with current assets and liabilities. •recommends separation of current and noncurrent assets and liabilities

Issue IFRS US GAAP

Deferred taxes Shown as separate line items on the balance sheet

Included with assets and liabilities

Minority interests Included in equity as a separate line item 

Included in liabilities as a separate line item

Extraordinary items Prohibited infrequent

Bank overdrafts May be included in cash if used in cash management

Charged as a financing activity

IFRS GAAP

Use of cost formula Same Not same

Classification:• Interest paid• Interest received

•Operating/ investing•Operating/ financing

operating

Basis of measurement

Revalued / historic cost

Historic cost

Comparative Information

References http://www.investopedia.com http://www.readyratios.com http://www.readyratios.com/reference/accounting/us_gaap.html http://www.ey.com/Publication/vwLUAssets/US_GAAP_v_IFRS:_

The_Basics/$FILE/US%20GAAP%20v%20IFRS%20Dec%202011.pdf

http://www.dummies.com/how-to/content/comparing-us-gaap-and-ifrs-accounting-systems.html

http://www.ifrs.org/Pages/default.aspx

Thank you