Question

Where can authoritative IFRS guidance be found related to the statement of financial position (balance sheet) and the statement of cash flow?

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to statement of financial position (balance sheet) reporting.

Answer 1

Q1)
In general, the disclosure requirements related to the balance sheet and the statement of cash flows are much more extensive and detailed in the U.S. IAS 1, Presentation of Financial Statements, provides the overall IFRS requirements for balance sheet information. IAS 7, Cash Flow Statements, provides the overall IFRS requirements for cash flow information.

Ques 2)
Among the similarities between IFRS and U.S. GAAP related to statement of financial position presentation are as follows:

•IAS 1 specifies minimum note disclosures. These must include information about (a) accounting policies followed, (b) judgments that management has made in the process of applying the entity’s accounting policies, and (c) and the key assumptions and estimation uncertainty that could result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
•Comparative prior-period information must be presented and financial statements must be prepared annually.
•Current/non-current classification for assets and liabilities is normally required. In general, post-financial statement events are not considered in classifying items as current or noncurrent.

Differences :

(a) IFRS statements may report property, plant, and equipment first in the statement of financial position. Some companies report the sub-total net assets, which equals total assets minus total liabilities.

(b) While the use of the term reserve is discouraged in U.S. GAAP, there is no such prohibition in IFRS.