IFRS vs. GAAP: Comparing and Contrasting Financial Statement Requirements

Over 144 jurisdictions require the use IFRS for all or most companies, while entities in the United States predominantly apply GAAP. There are similarities and substantial differences between these reporting methods. Recent standard setting has often sought to align the two bases of accounting, but there are differences including in the new lease standard, as well as the differences that have existed for a while related to inventory, fixed assets and stock-based compensation to name just a few. These differences can substantially alter the financial results reported.

For those adopting IFRS for the first time, IFRS 1, First-Time Adoption of International Financial Reporting Standards, provides guidelines for preparing a company's first IFRS-based financial statements. This challenging process requires applying IFRS principles retroactively, with few exceptions. There are many unique disclosure requirements for the initial IFRS statements as well.

Preparing compliant financial statements under two sets of guidelines is a complex process for practitioners who thoroughly understand IFRS and GAAP reporting requirements. U.S. multinational investors, cross-border companies, and anyone wanting to be able to interpret non-U.S. financial statements need to be able to compare these financial statements as well.

Listen as our panel of international reporting experts identifies key balance sheet, income statement, and disclosure differences in U.S. GAAP and IFRS to enable CPAs to comply with these standards and allow multinational investors to better analyze financial statements.

1. Converting from U.S. GAAP to IFRS and vice versa
2. Critical differences in the balance sheet accounts
3. Key differences in the income statement accounts
4. Specific transaction-related differences
5. Unique reporting and disclosure considerations

The panel will review these and other key issues:

• Specific countries adopting and not adopting IFRS
• Differences between IFRS and GAAP reporting of combinations and mergers
• Differences between the two leasing standard (ASC 842 and IFRS 16)
• First-time IFRS adoption requirements under IFRS 1
• Accounting for stock-based compensation

Learning Objectives

After completing this course, you will be able to:

• Identify specific reporting differences for leases under GAAP and IFRS
• Determine permitted inventory reporting methods under IFRS
• Ascertain when fair value revaluations are permitted under IFRS
• Decide when impairment losses are reported under GAAP vs. IFRS

• Field of Study: Accounting
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience, preparing reviewed, compiled, and audited financial statements and the relative disclosures. Specific knowledge and understanding of GAAP, SSARS, and peer review policies.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.