Differences between IFRS and US GAAP

Overview

This program provides basic knowledge on the differences of IFRS and US GAAP. Prerequisite knowledge is however required in either of the two sets of standards for the participant to understand the differences and similarities between IFRS and US GAAP.

Upon completion of this learning module you will be able to:

Provisions

• Identify situations where the different interpretation of the word “probable” could lead companies to record provisions earlier under IFRS than they otherwise would have under US GAAP;

• Apply the definition of “provision” and “contingent liability” under US GAAP and IFRS and identify recognition and measurement differences;

• Calculate provision based on estimates of probable outcomes;

Employee Benefits/Pensions

• Distinguish the main type of post-employment benefit plans under both set of standards;

• Define the correct measurement of plan assets and cost components to be considered in the Profit & Loss for defined benefit plans;

• Distinguish measurement of net defined benefit asset under US GAAP and IFRS;

Revenue Recognition

• Identify criteria when two or more legal contracts have to be combined into a single contract;

• Identify different approaches to account for shipping and handling services provided to a customer by third parties and whether they give rise to separate performance obligations;

Financial Instruments

• Distinguish classification and recognition principles of financial instruments under both set of standards and define correct measurement of the categories;

• Define differences in the impairment methods of financial instruments;

PP&E/Intangible Assets Inventories/Offsetting Consolidation

• Distinguish different accounting principles in the recognition and measurement of PPE, intangible assets and inventories such as: application of component approach, revaluation method, inventory valuation methods, write-down and reversal of impairment under the two set of standards;

• Define criteria for offsetting under both accounting rules; and

• Define criteria for an investor having power over an investee.

Further information:

• Training hours: 3 hours

• CPD: 3.0

• Language: English

• Topics: IFRS, Reporting
• Sector: Corporates

• Training method: E-learning

• Type: Single course

• Geographic relevance: Global