"Asset Impairments" Compare and contrast the differences between asset impairment under U.S. GAAP and IFRS. What...

"Asset Impairments"

Compare and contrast the differences between asset impairment under U.S. GAAP and IFRS. What are the financial statement implications of these differences?

Solutions

Expert Solution

Answer:

Impairment of Value :

As Per US GAAP

Assets are tested for impairment when events or changes in indicators suggest that book value may not be recoverable.
An impairment loss is required when an asset's book value exceeds the undiscounted sum of the estimated future cash flow.
Under US GAAP there are three impairment model - One Model For Goodwill, One model for intengible with indefinite lives and one model applicable to other long lived assets.

As per IFRS

Assets must be assessed for circumstances of impairment at the end of each reporting period.
An impairment loss is required when an asset's book value exceeds the higher of the asset's value-in-use (present value of estimated future cash flow) and fair value less costs to sell.
Under IFRS a single model applies to - goodwill, intangibles with indefinite and finite values and property, plant and equipment.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Compare and contrast the differences in accounting for investments between U.S. GAAP and IFRS.

Define IFRS then compare and contrast GAAP with IFRS.

List FIVE of the differences between IFRS and GAAP? What are the financial implications to U.S....

List FIVE of the differences between IFRS and GAAP? What are the financial implications to U.S. companies if IFRS is adopted?

What are the major differences in measuring net income between IFRS and U.S. GAAP.

What are the differences between recognition of accounts receivables under GAAP and IFRS ? ( please,...

What are the differences between recognition of accounts receivables under GAAP and IFRS ? ( please, I need the answer for A/R, not about the differences on revenue recognition in general )

What is the primary difference between interim reports under IFRS and U.S. GAAP?

Please By detiels ! One of the main differences between U.S. GAAP and IAS/IFRS is the...

Please By detiels ! One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. 1) How should the recoverability of the carrying amount of property, plant & equipment be accounted for? 2) How should any revaluation surplus from a revalued asset be treated if the revalued asset...

Discuss the differences between the cash flow statement under GAAP and IFRS. What is your opinion...

Discuss the differences between the cash flow statement under GAAP and IFRS. What is your opinion on the flexibility offered under IFRS? Defend your opinion.

Compare the major similarities and differences between IFRS and GAAP in regard to authoritative guidance of...

Compare the major similarities and differences between IFRS and GAAP in regard to authoritative guidance of the statement of cash flows. Identify two (2) differences in IFRS and GAAP, and suggest to the IFRS board which GAAP technique it should implement. Explain the primary way in which the differences you selected will benefit financial statement users. Compare and contrast each of the types of financial statements: balance sheet, income statement, and statement of cash flows. Give your opinion of the...

1. Examine the differences and similarities between the U.S. GAAP and IFRS valuation methods on assets...

1. Examine the differences and similarities between the U.S. GAAP and IFRS valuation methods on assets and liabilities. 2. How could these differing methods affect the probability of fraud occurring in valuing assets and liabilities? 3. How do the different valuation methods affect the results of auditing assets and liabilities, and what could be done to improve these auditing results?

Subjects