Term
| GAAP-Differences Full Disclosure in Financial Reporting…Adjusts fo |
|
Definition
| Adjusts for stock dividends and splits in the subsequent period |
|
|
Term
| GAAP-Differences Full Disclosure in Financial Reporting…Subsequent |
|
Definition
| Subsequent events are evaluated through the date that financial statements are issued |
|
|
Term
| GAAP-Differences Full Disclosure in Financial Reporting…Requires d |
|
Definition
| Requires disclosure of name of related party |
|
|
Term
| GAAP-Differences Full Disclosure in Financial Reporting…Interim re |
|
Definition
| Interim reports are prepared on an integral basis |
|
|
Term
| GAAP-Differences Full Disclosure in Financial Reporting…Interim re |
|
Definition
| Interim reports are prepared on a quarterly basis |
|
|
Term
| GAAP/IFRS-Similarities Full Disclosure in Financial Reporting…Accounting |
|
Definition
| Accounting for subsequent events |
|
|
Term
| GAAP/IFRS-Similarities Full Disclosure in Financial Reporting…Accounting |
|
Definition
| Accounting for related party transactions |
|
|
Term
| GAAP/IFRS-Similarities Full Disclosure in Financial Reporting…Uses manag |
|
Definition
| Uses management approach to identify reportable segments |
|
|
Term
| GAAP-Differences Statement of Cash Flows…Treats ban |
|
Definition
| Treats bank overdrafts as a liability and reports the amount in the financing section of the Statement of Cash Flows |
|
|
Term
| GAAP-Differences Statement of Cash Flows…Dictates t |
|
Definition
| Dictates that taxes and interest must be reported as operating activities and dividends must be reported as financing activities |
|
|
Term
| GAAP-Differences Statement of Cash Flows…Allows thi |
|
Definition
| Allows this information to presented in the Statement of Cash Flows |
|
|
Term
| GAAP/IFRS-Similarities Statement of Cash Flows…Requires p |
|
Definition
| Requires preparation of Statement of Cash Flows |
|
|
Term
| GAAP/IFRS-Similarities Statement of Cash Flows…Requires t |
|
Definition
| Requires three major sections – operating, investing, and financing along with changes in cash and cash equivalents |
|
|
Term
| GAAP/IFRS-Similarities Statement of Cash Flows…Allows for |
|
Definition
| Allows for the direct or indirect method |
|
|
Term
| GAAP/IFRS-Similarities Statement of Cash Flows…Definition |
|
Definition
| Definition of cash equivalents |
|
|
Term
| GAAP-Differences Changes and Error Analysis…The Imprac |
|
Definition
| The Impracticability exception applies only to changes in accounting principle |
|
|
Term
| GAAP-Differences Changes and Error Analysis…Had detail |
|
Definition
| Had detailed guidance on the accounting and reporting of indirect effects |
|
|
Term
| GAAP-Differences Changes and Error Analysis…Standard i |
|
Definition
|
|
Term
| GAAP-Differences Changes and Error Analysis…Has detail |
|
Definition
| Has detailed guidance on the accounting and reporting of indirect effects of changes in accounting principles |
|
|
Term
| GAAP-Differences Changes and Error Analysis…Requires 3 |
|
Definition
| Requires 3 years for presenting comparative data because of accounting changes and errors |
|
|
Term
| GAAP-Differences Changes and Error Analysis…Interim re |
|
Definition
| Interim reports are prepared on a quarterly basis I |
|
|
Term
| GAAP/IFRS-Similarities Changes and Error Analysis…Accounting |
|
Definition
| Accounting for changes in estimates |
|
|
Term
| GAAP/IFRS-Similarities Changes and Error Analysis…Requires r |
|
Definition
| Requires restatement for error corrections in previously issued financial statements |
|
|
Term
| GAAP-Differences Leases…Finance le |
|
Definition
|
|
Term
| GAAP-Differences Leases…Uses brigh |
|
Definition
| Uses bright-line criteria to determine whether a lease arrangement transfers risks of ownership |
|
|
Term
| GAAP-Differences Leases…Addresses |
|
Definition
| Addresses lease agreements for natural resources, sale-leasebacks, real estate, and leveraged leases |
|
|
Term
| GAAP-Differences Leases…Uses an in |
|
Definition
| Uses an incremental discount rate to record a lease unless a lower implicit rate is known |
|
|
Term
| GAAP-Differences Pensions…Projected |
|
Definition
| Projected benefit obligation |
|
|
Term
| GAAP-Differences Pensions…Prior serv |
|
Definition
|
|
Term
| GAAP-Differences Pensions…Amortizes |
|
Definition
| Amortizes prior service costs over the remaining lives of employees |
|
|
Term
| GAAP-Differences Pensions…An asset r |
|
Definition
| An asset return component is calculated by applying the expected return to beginning plan assets |
|
|
Term
| GAAP-Differences Pensions…Recognizes |
|
Definition
| Recognizes liability and asset gains/losses in “Accumulated other comprehensive income” and amortizes these amounts to income over their remaining service lives using the “corridor approach” |
|
|
Term
| GAAP-Differences Pensions…Uses diffe |
|
Definition
| Uses different rules and different accounting for pensions and postretirement benefits |
|
|
Term
| GAAP/IFRS-Similarities Pensions…Separate p |
|
Definition
| Separate pension plans into defined contribution plans and defined benefit plans |
|
|
Term
| GAAP/IFRS-Similarities Pensions…Accounting |
|
Definition
| Accounting for defined contribution plan |
|
|
Term
| GAAP/IFRS-Similarities Pensions…Recognizes |
|
Definition
| Recognizes a pension asset/liability as the funded status of the plan, i.e. projected benefit obligation/defined benefit obligation minus the fair value of plan assets |
|
|
Term
| GAAP/IFRS-Similarities Pensions…Computes p |
|
Definition
| Computes prior/past service cost in the same manner |
|
|
Term
| GAAP-Differences Income Taxes…Classifies |
|
Definition
| Classifies deferred taxes on the classification of the asset or liability to which it relates |
|
|
Term
| GAAP-Differences Income Taxes…Uses the e |
|
Definition
| Uses the enacted tax rate to measure deferred tax assets and liabilities |
|
|
Term
| GAAP-Differences Income Taxes…Uses an im |
|
Definition
| Uses an impairment approach for deferred tax assets. The deferred tax asset is recognized in full and then reduced by a valuation account if it is more likely than not that all or a portion of the deferred tax asset will not be realized |
|
|
Term
| GAAP-Differences Income Taxes…Reports ta |
|
Definition
| Reports tax effects related to certain items as charges or credits to income |
|
|
Term
| GAAP-Differences Income Taxes…Records on |
|
Definition
| Records only those tax liabilities where the tax position is “more likely than not” to be disallowed on a tax audit |
|
|
Term
| GAAP/IFRS-Similarities …Uses the a |
|
Definition
| Uses the asset and liability approach for recording deferred taxes |
|
|
Term
| GAAP-Differences Revenue Recognition…Uses conce |
|
Definition
| Uses concepts such as realizable revenue and earned revenue |
|
|
Term
| GAAP-Differences Revenue Recognition…Recognizes |
|
Definition
| Recognizes the completed contract method and percentage of completion method for long-term contracts |
|
|
Term
| GAAP-Differences Revenue Recognition…Separates |
|
Definition
| Separates definition for revenues and gains |
|
|
Term
| GAAP-Differences Revenue Recognition…Numerous s |
|
Definition
| Numerous standard for revenue recognition |
|
|
Term
| GAAP-Differences Revenue Recognition…Measures r |
|
Definition
| Measures revenue based on the fair value of what is given up (goods or services) or the fair value of what is received—whichever is more clearly evident |
|
|
Term
| GAAP/IFRS-Similarities Revenue Recognition…Recognizes |
|
Definition
| Recognizes loss on a contract deemed unprofitable |
|
|
Term
| GAAP/IFRS-Similarities Revenue Recognition…Accounting |
|
Definition
| Accounting for point of sale |
|
|
Term
| GAAP-Differences Derivatives…Classifies |
|
Definition
| Classifies investments as: 1. Trading 2. Available for sale (debt and equity) Held-to-maturity (debt) |
|
|
Term
| GAAP-Differences Derivatives…Permits th |
|
Definition
| Permits the fair value option for equity method |
|
|
Term
| GAAP-Differences Derivatives…Prohibits |
|
Definition
| Prohibits recovery of impairment losses for available-for-sale debt and equity investments |
|
|
Term
| GAAP-Differences Derivatives…Basis of c |
|
Definition
| Basis of consolidation is a bipolar approach which is a risk-and-reward model (aka variableentity approach) and a voting-interest approach |
|
|
Term
| GAAP-Differences Derivatives…Gains/loss |
|
Definition
| Gains/losses on cash flow hedges from changes in value are reported on the balance sheet as part of other comprehensive income in stockholders’ equity |
|
|
Term
| GAAP/IFRS-Similarities Derivatives…Have a tra |
|
Definition
| Have a trading investment classification |
|
|
Term
| GAAP/IFRS-Similarities Derivatives…Same test |
|
Definition
| Same test to determine whether the equity method of accounting should be used |
|
|
Term
| GAAP/IFRS-Similarities Derivatives…Accounting |
|
Definition
| Accounting for the fair value option |
|
|
Term
| GAAP/IFRS-Similarities Derivatives…Measuremen |
|
Definition
| Measurement of impairments |
|
|
Term
| GAAP/IFRS-Similarities Derivatives…For consol |
|
Definition
| For consolidation to occur, a 50% or more ownership is required |
|
|
Term
| GAAP-Differences Dilutive Securities and Earnings Per Share…All procee |
|
Definition
| All proceeds of convertible debt are recorded as long-term debt |
|
|
Term
| GAAP-Differences Dilutive Securities and Earnings Per Share…Employee s |
|
Definition
| Employee stock purchase plans are noncompensatory and no compensation is recorded provided the discount is 5% or less, and the plan is offered to all employees on an equitable basis. |
|
|
Term
| GAAP-Differences Dilutive Securities and Earnings Per Share…Permits re |
|
Definition
|
|
Term
| GAAP/IFRS-Similarities Dilutive Securities and Earnings Per Share…Uses the s |
|
Definition
| Uses the same model for recognizing stock-based compensation |
|
|
Term
| GAAP/IFRS-Similarities Dilutive Securities and Earnings Per Share…Calculatio |
|
Definition
| Calculation of basic and diluted EPS |
|
|
Term
| GAAP/IFRS-Similarities Dilutive Securities and Earnings Per Share…Accounting |
|
Definition
| Accounting for modifications of share options, when the value increases |
|
|
Term
| GAAP/IFRS-Similarities Dilutive Securities and Earnings Per Share…Records in |
|
Definition
| Records increases in fair value of share options |
|
|
Term
| GAAP-Differences Stockholders’ Equity…Uses the t |
|
Definition
| Uses the term “ Other Comprehensive Income” of other equity transactions |
|
|
Term
| GAAP-Differences Stockholders’ Equity…Common sto |
|
Definition
| Common stock vs Share capital-ordinary |
|
|
Term
| GAAP-Differences Stockholders’ Equity…Additonal |
|
Definition
| Additonal paid-in capital vs Share premium |
|
|
Term
| GAAP-Differences Stockholders’ Equity…Statement |
|
Definition
| Statement of Stockholders equity vs Statement of changes in equity |
|
|
Term
| GAAP-Differences Stockholders’ Equity…Preferred |
|
Definition
| Preferred Stock vs Preferensce shares |
|
|
Term
| GAAP-Differences Stockholders’ Equity…Accounting |
|
Definition
| Accounting for retirement of treasury share retirements: 1. charge the excess of the cost of treasury shares over par value to retained earnings; or 2. allocate the difference between paid-in capital and retained earnings; or charge the entire amount to paid-in capital. |
|
|
Term
| GAAP/IFRS-Similarities Stockholders’ Equity…Accounting |
|
Definition
| Accounting for issuance of stock and purchase of treasury stock |
|
|
Term
| GAAP/IFRS-Similarities Stockholders’ Equity…Accounting |
|
Definition
| Accounting for declaration and payment of dividends |
|
|
Term
| GAAP/IFRS-Similarities Stockholders’ Equity…Accounting |
|
Definition
| Accounting for stock splits |
|
|
Term
| GAAP/IFRS-Similarities Stockholders’ Equity…Requires S |
|
Definition
| Requires Statement of Stockholders’ Equity |
|
|
Term
| GAAP/IFRS-Similarities Stockholders’ Equity…Uses the t |
|
Definition
| Uses the term “Retained Earnings |
|
|
Term
| IFRS-Differences Full Disclosure in Financial Reporting…Note discl |
|
Definition
| Note disclosure is more expansive |
|
|
Term
| IFRS-Differences Full Disclosure in Financial Reporting…Does not a |
|
Definition
| Does not adjust for stock dividends and splits |
|
|
Term
| IFRS-Differences Full Disclosure in Financial Reporting…Subsequent |
|
Definition
| Subsequent events are evaluated through the date that financial statements are authorized for issue |
|
|
Term
| IFRS-Differences Full Disclosure in Financial Reporting…Name relat |
|
Definition
| Name related parties-No such requirement |
|
|
Term
| IFRS-Differences Full Disclosure in Financial Reporting…Interim re |
|
Definition
| Interim reports are prepared on a discrete basis |
|
|
Term
| IFRS-Differences Full Disclosure in Financial Reporting…Interim re |
|
Definition
| Interim reports are prepared on a six-month basis |
|
|
Term
| IFRS-Differences Statement of Cash Flows…Treats ban |
|
Definition
| Treats bank overdrafts as part of cash and cash equivalents |
|
|
Term
| IFRS-Differences Statement of Cash Flows…Offers mul |
|
Definition
| Offers multiple options e.g. interest can be an operating or financing activity and income taxes is treated as cash flows from operating activities unless they can be separately identified as part of investing or financing activities |
|
|
Term
| IFRS-Differences Statement of Cash Flows…Non-cash a |
|
Definition
| Non-cash and financing activities are excluded from the Statement of Cash Flows and disclosed in the notes to the financial statements |
|
|
Term
| IFRS-Differences Changes and Error Analysis…The imprac |
|
Definition
| The impracticability exception applies to changes in accounting principles and correction of errors |
|
|
Term
| IFRS-Differences Changes and Error Analysis…Does not h |
|
Definition
| Does not have detailed guidance on the accounting and reporting of indirect effects |
|
|
Term
| IFRS-Differences Changes and Error Analysis…Standard i |
|
Definition
|
|
Term
| IFRS-Differences Changes and Error Analysis…Does not s |
|
Definition
| Does not specifically address the matter-indirect effects |
|
|
Term
| IFRS-Differences Changes and Error Analysis…Requires 2 |
|
Definition
| Requires 2 years for presenting comparative data because of accounting changes and errors |
|
|
Term
| IFRS-Differences Changes and Error Analysis…Interim re |
|
Definition
| Interim reports are prepared on a six-month basis |
|
|
Term
| IFRS-Differences Leases…Capital le |
|
Definition
|
|
Term
| IFRS-Differences Leases…Uses gener |
|
Definition
| Uses general provisions to determine whether a lease arrangement transfers risks of ownership |
|
|
Term
| IFRS-Differences Leases…Provides n |
|
Definition
| Provides no guidance for these lease types-natural resources, sale-leasebacks, real estate, and leveraged leases |
|
|
Term
| IFRS-Differences Leases…Uses an im |
|
Definition
| Uses an implicit rate to record a lease unless it is impractical to determine it |
|
|
Term
| IFRS-Differences Pensions…Defined be |
|
Definition
| Defined benefit obligation |
|
|
Term
| IFRS-Differences Pensions…Past servi |
|
Definition
|
|
Term
| IFRS-Differences Pensions…Recognizes |
|
Definition
| Recognizes past service cost as a component of pension expense |
|
|
Term
| IFRS-Differences Pensions…Regarding |
|
Definition
| Regarding asset returns, pension expense is reduced by interest revenue which is calculated by applying the discount rate to beginning plan assets |
|
|
Term
| IFRS-Differences Pensions…Recognizes |
|
Definition
| Recognizes liability and asset gains/losses referred to as “remeasurements” in other comprehensive income |
|
|
Term
| IFRS-Differences Pensions…Uses the s |
|
Definition
| Uses the same rules to account for pensions and postretirement benefits |
|
|
Term
| IFRS-Differences Income Taxes…Classifies |
|
Definition
| Classifies all deferred tax assets and liabilities as noncurrent |
|
|
Term
| IFRS-Differences Income Taxes…Uses the e |
|
Definition
| Uses the enacted tax rate or substantially enacted tax rate to measure deferred tax assets and liabilities |
|
|
Term
| IFRS-Differences Income Taxes…Uses an af |
|
Definition
| Uses an affirmative judgment approach for recognizing all or a portion of deferred tax asset that will not be realized |
|
|
Term
| IFRS-Differences Income Taxes…Reports ta |
|
Definition
| Reports tax effects related to certain items in equity |
|
|
Term
| IFRS-Differences Income Taxes…Records al |
|
Definition
| Records all potential tax liabilities to a tax audit |
|
|
Term
| IFRS-Differences Revenue Recognition…Bases reve |
|
Definition
| Bases revenue on the probability of economic benefits |
|
|
Term
| IFRS-Differences Revenue Recognition…Recognizes |
|
Definition
| Recognizes the percentage of completion and the cost recovery method for long-term contracts |
|
|
Term
| IFRS-Differences Revenue Recognition…Defines re |
|
Definition
| Defines revenue to include both revenues and gains |
|
|
Term
| IFRS-Differences Revenue Recognition…One basic |
|
Definition
| One basic standard for revenue recognition |
|
|
Term
| IFRS-Differences Revenue Recognition…Measures r |
|
Definition
| Measures revenue based on the fair value of the consideration received or receivable |
|
|
Term
| IFRS-Differences Derivatives…Classifies |
|
Definition
| Classifies investments as: 1. Held-for-collection (debt) 2. Trading (debt and equity) Non-trading equity |
|
|
Term
| IFRS-Differences Derivatives…Prohibits |
|
Definition
| Prohibits the fair value option for equity method |
|
|
Term
| IFRS-Differences Derivatives…Allows rec |
|
Definition
| Allows recovery of impairment losses of held-forcollection investments |
|
|
Term
| IFRS-Differences Derivatives…Basis of c |
|
Definition
| Basis of consolidation is control |
|
|
Term
| IFRS-Differences Derivatives…Records ga |
|
Definition
| Records gains/losses on cash flow hedges from changes in value as adjustments to the value of the hedged item |
|
|
Term
| IFRS-Differences Dilutive Securities and Earnings Per Share…Separates |
|
Definition
| Separates the proceeds of convertible debt between debt and equity. The liability component is computed using the net present value of all contractual future cash flows discounted at the market rate of interest. The equity component subtracts the liability component from the convertible debt proceeds. |
|
|
Term
| IFRS-Differences Dilutive Securities and Earnings Per Share…All employ |
|
Definition
| All employee stock purchase plans are compensatory and the compensation expense is recorded for the amount of the discount. |
|
|
Term
| IFRS-Differences Stockholders’ Equity…Uses the t |
|
Definition
| Uses the term “Reserve” for other equity transactions |
|
|
Term
| IFRS-Differences Stockholders’ Equity…Uses the t |
|
Definition
| Accounting for retirement of treasury share retirements excess of the cost of treasury shares may have to be charged to paid- in capital |
|
|
