Should we start a thread between all the differences in accounting treatment between IFRS and US GAAP? This way we can have one sheet and know all the differences. If someone has done this already and would like to share, by all means please let me know.
There are some good sites, but way too comprehensive for what we need. http://www.deloitte.com/dtt/cda/doc/content/us_assurance_IFRS_US_comparison2008.pdf I agree, let’s start it up US GAAP has a two-step process for finding impairment of goodwill The FV is first compared to the carrying value of an investment, if carrying value > fair value, then then FV is subsequently compared to the BV of assets to determine the amount of impairment. IFRS has a one step process, if carrying amount of cash generating unit (where the goodwill is assigned) exceeds the recoverable amount, an impairment loss is recognized.
IFRS and US GAAP both require using the purchase method to account for business combinations. Under US GAAP only the acquired portion of the subsidiary (% acquired) has been purchased and therefore, only that portion should be carried at fair value. Minority or noncontrolling interests are at book value. IFRS considers the company a whole and cannot divide it, thus all assets and liabilities are recorded at fair value, including the minority interest (except that no goodwill is attributed to minority interst as a result of the acquisition).
SPE’s ------ GAAP: May have qualified SPE’s, meaning that the sponsor does not have to consolidate. IFRS: Must always consolidate SPE’s.
prop consolidation ok for IFRS, no go for GAAP.
might be interesting too… inventory treatment us gaap: fifo, lifo and average method ifrs: lifo costing is now banned under IFRS
basnnisja, I read somewhere that GAAP allows prop consolidation for a few exceptions, I think that I saw that on schweser, any idea whether this is correct? Thanks! M.
Yes it’s correct, for construction companies
Hey guys, I think we should keep this thread at the top of the discussions so that evryboday can contribute… Multinational Operations: Hyperinflationary environment: ==> IFRS: restating for inflation then current method. ==> US GAAP: temporal method without need for restating what’s next? 
M.
Here it goes… One of my yuckest topics Pension accounting US Gaap : The net ( PBO - Assets ) is reported as funded status either as an asset or liability IFRS: The net funded status is reported after eliminating past service cost and deferred gains ( Those losses not realized on the IS ).