19. UK GAAP Flashcards
IFRS v GAAP: conceptual framework: Concepts: No. qualitative characteristics
IF: 6
UK: 10
(No difference between fundamental and enhancing qualitative characteristics)
IFRS v GAAP: Concepts: Qualitative characteristics: Which included?
IF: Doesn’t specifically mention some
E.g. materiality, substance over form, prudence, benefit/cost
UK: Identified specifically
IFRS v GAAP: Concepts: Assets: Economic benefits
IF: “potential” to
UK: “expected” to
IFRS v GAAP: Formats: Recommended/prescribed?
IF: Recommended
UK: Prescribed (CA)
IFRS v GAAP: Formats: Allowed ‘statement of income and retained earnings’ to sometimes replace SOCI and SOCE?
IF: No
UK: Yes
IFRS v GAAP: Formats: ‘true and fair’ override?
Yes both
IFRS v GAAP: Inventories: NRV
IF: FV
(industry view of expected sale price)
UK: Estimated selling price less costs to sell
(entity view of estimated sale price)
IFRS v GAAP: Discontinued operations
IF: One line on SPL
Further detail on notes
UK: Separate column in IS
IFRS v GAAP: Assets held for sale
IF: Allowed
(Classed as current so no depn)
UK: Not allowed
(Continue depn)
IFRS v GAAP: Revenue from contracts with customers
IF: 5 stage approach
UK: No specific approach but similar outcomes
IFRS v GAAP: Borrowing costs
IF: Eligible borrowing costs must be capitalised
UK: Choice to capitalise or expense
IFRS v GAAP: UK intangibles exemption
Reconciling disclosure exemption when presenting comparative info
IFRS v GAAP: Development costs
IF: Must be capitalised
UK: Capitalize or expense
IFRS v GAAP: Useful lives of intangibles
IF: Indefinite
UK: Finite
Not over 10y
(‘rebbutable presumption’)
IFRS v GAAP: Capital grants
IF: Either deferred income or netting off method
UK: Deferred income method only
IFRS v GAAP: Initial recognition of financial instruments
IF: Fair value
UK: Transaction price
IFRS v GAAP: Goodwill amort
IF: Not amortised
Tested annually for impairment
UK: Amortized
IFRS v GAAP: Goodwill impairment reversal
IF: Not allowed
UK: Allowed
IFRS v GAAP: Goodwill: Gain on bargain purchase
IF: Recognized though SPL
UK: Called negative goodwill
Shown separately in asset section of CSFP as deduction from +ve GW
IFRS v GAAP: Acquisition costs
IF: Expensed
UK: Added to consideration
IFRS v GAAP: NCI
IF: Choice of fair value or proportionate method
UK: Only proportionate method allowed
IFRS v GAAP: Consolidation: Exclusions
IF: None allowed
UK: Sub should be excluded when a. severe long-term restrictions apply OR
b. sub held exclusively for resale
IFRS v GAAP: Associates: Goodwill
IF: No separate GW recognized
UK: Implicit goodwill recognized (& amort)
IFRS v GAAP: Changes to accounting policies: Is a change to the cost model when FV can no longer be determined a change of accounting policy?
IF: No comment
UK: Not a change
(When reliable measure of FV no longer available)
IFRS v GAAP: Related party disclosures
UK GAAP does not require disclosure of transactions entered into between 2+ members of a group
(As long as sub wholly owned by other party)
IFRS v GAAP: UK financial instruments disclosures exemption
Complete exemption
If equivalent discloses are in the consol FS to which they belong
IFRS v GAAP: Leases
IF:
a. More than 12m: Capitalized as ROU assets (unless ‘low value’)
b. Less than 12m: Straight-line expense
UK:
a. Finance lease: ROU
b. Operating lease: Straight-line expense
IFRS v GAAP: PPE: Proceeds from sale of items produced in bringing PPE to location/condition
IF: Recognized in period earned
UK: Deducted from carrying amount
