what are the main difference between IAS and US GAAP? 1) dividends paid are classified either CFF or CFO under IAS, CFF under US. 2) dividends received are classified either CFO or CFI under IAS, CFO under US Can you add to the list?
maratikus, I think IAS GAAP also allows assets to be revalued upwards, rather than just impaired like US GAAP. JoeyD and TMurf recently discussed one exception for US GAAP, which I think was bullion, but I don’t think CFAI will test on that sort of thing if you haven’t seen it yet in your books.
Interest Received CFO (US) CFO or CFI (IAS) Interest Paid CFO (US) CFO or CFF (IAS) Dividends Received CFO (US) CFO or CFI (IAS) Dividends Paid CFF (US) CFO or CFF (IAS) In short for the IAS side – anything paid is CFO or CFF Anything received is CFO or CFI In the US – Interest (anything) is CFO, Dividend Received is CFO Dividend paid = CFF
- Interest Paid classified as CFO or CFF 4) Interest Received classified as CFO or CFI
Non-recurring and discontinued operation? how are they classified differently?
Saw a question last night on non-recurring and discontinued operations between IAS GAAP and US GAAP on one of the sample CFAI exams. Definitely something to know.
I saw that question on the practice exam.
Goodwill US GAAP - Not amortized IAS- may be amortized Interest for construction of Lt assets USGAAP - capitalized
How are unusual items, extraordinary items, and discontinued operations classified under IAS?
pg 182 CFAI Text has all of these covered… Thanks Delhirocks for providing reference earlier. http://www.analystforum.com/phorums/read.php?11,632549,632578#msg-632578 Summarising in the 2007 books from CFAI – the IAS vs. US GAAP is only referred to in the CFO/CFI/CFF impacts. not for non-recurring and/or lease related stuff. I believe those were there in the 2006 exam. Item************US GAAP******IAS GAAP Interest Recd******CFO*********CFO or CFI Dividend Recd******CFO*********CFO or CFI Dividend Paid******CFF*********CFO or CFF Interest paid ***** CFO*********CFO or CFF * LIFO is not allowed in IAS * LCM of inventory is at NRV only (US GAAP = range between NRV —NRV-profit margin) * Inventory once written down can be written up in IAS not in GAAP. * Presentation of extraordinary items are not allowed in IAS * Definition of discontinued operations is very narrow in IAS as the operation would have to be a seperate business or geographic area. * There is no concept of valuation reserve in IAS, DTA is only recognized, if realization is probable. * Capitalization of interest on qualifying assets is required in GAAP but is optinal in IAS. CFAI books also talk about different treatment of impairments. According to US GAAP if an asset market value is below its book value, it can be impaired but the book value can’t go up if the market value is above the BV. However, IAS GAAP allows that. – from mwt9 “Golden words that might end up helping us” If you are unsure I would guess that they differ. IAS is always almost more flexible than US GAAP.