Heineken Ifrs vs Usgaap

Topics: Generally Accepted Accounting Principles, Depreciation, Asset Pages: 4 (1164 words) Published: October 8, 2012
General differences
Form and components of financial statements
Like IFRS, reports prepared under US GAAP are presented: (i) statement of financial position, (ii) statement of comprehensive income, (iii) statement of changes in equity, (iv) statement of cash flows, and (v) notes including accounting policies. Unlike IFRS it is not required under US GAAP to present a statement of financial position as the beginning of the earliest comparative period. However, SEC registrants are required to present statements of financial position as of the end of the current and prior periods. There are more specific format and line item disclosure requirements for SEC registrants. Unlike IFRS, it is needed to present statements for the most recent quarters. Basis of accounting

Both standards are prepared on a modified cost basis with growing emphasis on fair value. Financial statements can be measured into a non-highly inflationary currency. When an economy becomes highly inflationary, an entity makes price-level adjustments prospectively. Consolidation and non-controlling interest in consolidated financial statements Consolidation under IFRS is based under control model, which is assumed to exist when a parent company owns more than half of an entity's voting power, or has legal rights. US GAAP uses a bipolar consolidation model, which distinguishes between a variable interest model and a voting interest model. Business combination

The receiving entity records the net assets at their carrying amounts in the accounts of the transferor (historical cost).

Functional and presentation currency

Heineken’s consolidated financial statements are presented in euro, which is the Company’s actual functional currency. Once the acquisition is done, the local currency would be euro, the functional currency would be US dollar, and the reporting currency would be US dollar as well. Considerations assumed in the determination of functional currency: •The majority of the...
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