f compare key concepts of financial reporting standards under IFRS and U.S. GAAP reporting systems;

Question 1

IASB v. FASB

Answer 1

IASB:Inc Exp as elements related to performance. Asset = resource from which a future economic benefit is expected to flow. Uses ‘probable’ in valuation

FASB: Inc. rev. exp. gains, losses comprehensive income. Asset = future economic benefit. Doesn’t allow upward valuation of most assets.

Question 2

Reconciliation statement

Answer 2

Shows what financial results would have been under an alternative reporting system

Question 3

Compare key concepts of IFRS v. GAAP

Answer 3

Performance elements

BS elements

Recognition elements (accrual or cash based)

Measurement elements