Question

In: Accounting

Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:...

Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:

Treatment of Contingent Assets and Liabilities

Treatment of Asset Recognition

Treatment of Revenue Recognition

Treatment of Options

Treatment of Onerous Contracts

Treatment of Restructuring Provision

Treatment of Measurement of Deferred Taxes

Treatment of Service Contracts

Treatment of Financial Assets

Solutions

Expert Solution

In the case of contingent assets and liabilities

Companies operating in the United States rely on the guidelines established in the generally accepted accounting principles (GAAP). Under GAAP, a contingent liability is defined as any potential future loss that depends on a "triggering event" to turn into an actual expense.

.

IAS 37 Provisions, Contingent Liabilities and Contingent Assets outlines the accounting for provisions (liabilities of uncertain timing or amount), together with contingent assets (possible assets) and contingent liabilities (possible obligations and present obligations that are not probable or not reliably measurable). Provisions are measured at the best estimate (including risks and uncertainties) of the expenditure required to settle the present obligation, and reflects the present value of expenditures required to settle the obligation where the time value of money is material.

  With IAS 371, IFRS has one-stop guidance to account for provisions, contingent assets and contingent liabilities. Therefore, there is a single recognition, measurement and disclosure model for obligations such as legal claims and litigation, onerous contracts, restructuring2, assurance warranties, non-income tax exposures, environmental provisions and decommissioning

This contrasts with US GAAP, which has a number of Codification topics that, in combination, cover the same overall scope as IAS 37.
.


Related Solutions

Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:...
Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues: • Treatment of Inventory and Valuation methods • Treatment of Inventory write-down and Asset Impairment and revaluation • Treatment and determination of costs of Property, Plant, and Equipment • Treatment of Investment Properties • Treatment of Research and development costs • Treatment of Intangible Assets • Treatment of Assets’ Impairment Loss • Treatment of costs of borrowing to purchase or construct assets • Treatment...
Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:...
Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues: Treatment of Contingent Assets and Liabilities Treatment of Asset Recognition Treatment of Revenue Recognition Treatment of Options Treatment of Onerous Contracts Treatment of Restructuring Provision Treatment of Measurement of Deferred Taxes Treatment of Service Contracts Treatment of Financial Assets
Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:...
Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues: Treatment of Contingent Assets and Liabilities Treatment of Asset Recognition Treatment of Revenue Recognition Treatment of Options Treatment of Onerous Contracts Treatment of Restructuring Provision Treatment of Measurement of Deferred Taxes Treatment of Service Contracts Treatment of Financial Assets International Accounting (Loose-Leaf) 5e (Doupnik/Perera) McGraw-Hill (2019) 9781260466539.
Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the...
Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for inventories.
Explain the difference between IFRS and US GAAP in terms of inventory management..
Explain the difference between IFRS and US GAAP in terms of inventory management..
explain the differences between the IFRS and GAAP after FASB issued ASU 2017-04 to simplify the...
explain the differences between the IFRS and GAAP after FASB issued ASU 2017-04 to simplify the accounting for goodwill impairment) regarding the following: Assignment/allocation of goodwill. (i.e. The levels at which goodwill is assigned /allocated. Impairment of goodwill, test(s) applied, how impairment loss is recognized and allocated (In case the impairment loss exceeds [or does not exceed] the carrying value of goodwill), and reversal of impairment. Amortization and impairment of intangible assets other than goodwill Non-Controlling interest
Briefly summarize the GAAP and IFRS systems
Briefly summarize the GAAP and IFRS systems
the differences between IFRS and GAAP in "Balance Sheet and Statement of Cash Flows "
the differences between IFRS and GAAP in "Balance Sheet and Statement of Cash Flows "
Compare and contrast the differences in accounting for investments between U.S. GAAP and IFRS.
Compare and contrast the differences in accounting for investments between U.S. GAAP and IFRS.
There are several differences between IFRS and GAAP in regards to revenue recognition. First, there are...
There are several differences between IFRS and GAAP in regards to revenue recognition. First, there are differences in the conditions that must exist to recognize revenue from the sale of goods. For example, under IFRS, one of the conditions is that “The entity has transferred to the buyer the significant risks and rewards of the goods.” Where as one of the GAAP conditions is simply that “Delivery has occurred.” Second, there are differences in recognizing revenue from construction contracts. For...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT