What are the major differences in GAAP vs. IFRS for Intercorporate? For review. lets start off GAAP does not revise up investments to fair value, they keep it at cost GAAP makes adjustments to Other comp income under equity on unrealized G/L IFRS makes adjustments directly to equity on unrealized G/L What else?
my 1 cent For Joint ventures US GAAP does not allow proportionate consolidation unless under very rare cases while IFRS does.
search a thread from bannisja.
heres a few: when consolidating, under GAAP you recognize your portion of FMV of PPE above book value, where as under IFRS you recognize the entire difference. New GAAP (acquisition method) same as IFRS. minority interest - GAAP based on BV, IFRS, based on FMV - acquisition method based on implicit full value. Implicit full value = purchase price/% acquired. Goodwill - GAAP and IFRS the same but acquisition method is implicit full value - FMV of net assets.
you guys think this will really be tested? like a whole item set?
Everything is fair game, as long as there’s an LOS for it.
i doubt it will be tested directly, but indirectly absoultely. I mean if they ask you to calculate additional depreciation due to an acquisition, you’re gonna need to know the rules.
iregula Wrote: ------------------------------------------------------- > you guys think this will really be tested? like a > whole item set? Uhm rule of thumb everytime ur studyin something and say theres no way they can possibly test something so minute and obscure …the answer is always yes they can and will the CFAI has been F#$kin candidates over for more than a decade
that’s a huge list in the notes 1. consolidation methods 2. business combinations 3. joint ventures 4. intangible assets 5. insurance contract 6. capitalization of borrowing costs 7. financial instruments -recognition and measurement -sharehoders’ equity -dervaties and hedge accounting 8. leases 9. related party transactions 10. revenue recognition 11. share-based payments 12. Pensions and post-retirement benefits