Gaap vs. Ifrs
2013/5/19
Group Five GAAP VS. IFRS
US GAAP Codification Determination of Inventory Costs 330-10-30-9: Cost for inventory purposes may be determined under any one of several assumptions as to the flow of cost factors, such as first-in first-out (FIFO), average, and last-in first-out (LIFO). The major objective in selecting a method should be to choose the one which, under the circumstances, most clearly reflects periodic income.
May an entity elect LIFO method for inventory cost?
IAS 2 Inventories Cost formula 25 The cost of inventories, other than those dealt with in paragraph 23, shall be assigned by using the first-in, first-out (FIFO) or weighted average cost formula. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified. Prohibition of LIFO as a cost formula IN13 The Standard does not permit the use of the lastin, first-out (LIFO) formula to measure the cost of inventories.
Xi Zhen-Inventory cost Qian Teng-Basic EPS Zihui Yuan-Diluted EPS
Which amounts on the I/S must present basic &diluted EPS?
Similarities: Both require presentation of basic and diluted EPS for income from continuing operation either on the face of the income statement or in the notes disclosure. Differences:
US GAAP Relevant guidance Extraordinary items ASC260 Include IFRS IAS33 Prohibited Shares are calculated in incremental basis
•
Basic EPS
• Basic EPS =
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IAS 1 Presentation of Financial Statements Information to be presented in the other comprehensive income section
87 An entity shall not present any items of income or expense as extraordinary items, in the statement(s) presenting profit or loss and other comprehensive
Group Five GAAP VS. IFRS
US GAAP Codification Determination of Inventory Costs 330-10-30-9: Cost for inventory purposes may be determined under any one of several assumptions as to the flow of cost factors, such as first-in first-out (FIFO), average, and last-in first-out (LIFO). The major objective in selecting a method should be to choose the one which, under the circumstances, most clearly reflects periodic income.
May an entity elect LIFO method for inventory cost?
IAS 2 Inventories Cost formula 25 The cost of inventories, other than those dealt with in paragraph 23, shall be assigned by using the first-in, first-out (FIFO) or weighted average cost formula. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified. Prohibition of LIFO as a cost formula IN13 The Standard does not permit the use of the lastin, first-out (LIFO) formula to measure the cost of inventories.
Xi Zhen-Inventory cost Qian Teng-Basic EPS Zihui Yuan-Diluted EPS
Which amounts on the I/S must present basic &diluted EPS?
Similarities: Both require presentation of basic and diluted EPS for income from continuing operation either on the face of the income statement or in the notes disclosure. Differences:
US GAAP Relevant guidance Extraordinary items ASC260 Include IFRS IAS33 Prohibited Shares are calculated in incremental basis
•
Basic EPS
• Basic EPS =
������������������ ������������������������������������−������iv on ������/������ ������������ # ������������ ������ℎ������������������������ ������������������������������������������������������������������
IAS 1 Presentation of Financial Statements Information to be presented in the other comprehensive income section
87 An entity shall not present any items of income or expense as extraordinary items, in the statement(s) presenting profit or loss and other comprehensive