US GAAP vs IAS GAAP - Add to this list so we can consolidate

  1. Both US GAAP and IAS GAAP require disclosures about the fair value of outstanding debt based on year end or quarter end prices. 2. For Available-For-Sale securities US GAAP requires Unrealized G/L to be reported in Comprehensive income in Shareholders Equity. IAS says the company can choose to report in SE or directly on B/S. 3. Trading securities - Same for both US GAAP and IAS with Unrealized G/L reported on I/S Lets keep going - this might be an area that is tested…

For Joint Ventures - US GAAP = Equity ----- IAS = Equity or Proportionate Consolidation

Goodwill- Not amortized under either US GAAP or IAS, it is subject to impairment test annually.

Very good list zephyr. I was thinking the same thing. I have a gut feeling that the differences in accounting standards will be tested. here’s the condensed list so far… US GAAP vs. IAS (respectively in that order) 1. Available for Sale securities: Unrealized G/L - Comprehensive Income vs. company can choose IS or BS 2. Trading securities: Same for both. 3. Joint Ventures (each party owns 50%) Equity method vs. Proportionate Consolidation 4. Goodwill Not amortized, but subject to annual impairment test (both) 5. Asset revaluation Permitted vs. assets must be written down (NEVER up) 6. Pension accounting All - US GAAP new standards vs. US GAAP old standards

This might seem too big a file, but give pages 5-28 a quick once over.$file/us_gaap_v_ifrs.pdf

Here is the Worst one: You add in-progress R&D when calculating the post-merger goodwill, but after you calculate your goodwill, you expense the same in-process R&D immediately in the same period!! Double effect: Lower goodwill, lower Income. Anish

Is that for both anish?

oh sorry, that is for US GAAP. For IFRS, you may keep it on your BS after calculating Goodwill. Anish