Significant Differences (Ernst & Young,2011):
Generally, comparative financial
statements are presented; however, a single year may be presented in certain circumstances. Public companies must follow SEC rules, which typically require balance sheets for the two most recent years, while all other statements must cover the three-year period ended on the balance sheet date. Comparative information must be disclosed with respect to the previous period for all amounts reported in the financial statements.
Layout of balance sheet and income statement
No general requirement within US GAAP to prepare the balance sheet and income statement in accordance with a specific layout; however, public companies must follow the detailed requirements in Regulation S-X. IAS 1,Presentation of Financial
Statements, does not prescribe a standard layout, but includes a list of minimum items. These minimum items are less prescriptive than the requirements in Regulation S-X Presentation of debt as
non-current in the
Debt for which there has been a
covenant violation may be presented as non-current if a lender agreement to waive the right to demand repayment for more than one year exists prior to the issuance of the financial statements Debt associated with a covenant violation must be presented as current unless the lender agreement was reached prior to the balance sheet date. Classification of deferred tax assets and liabilities in balance sheet Current or non-current classification, based on the nature of the related asset or liability, is required. All amounts classified as non-current in the balance sheet.
classification of expenses
Income statement classification of expenses
Entities may present expenses based on either function or nature (e.g., salaries,depreciation).However, if function is selected, certain disclosures about the nature of expenses must be included in...
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