Gaap Diferences Flashcards
What’s the gaap differences in conceptual framework
- 10 qualities not 6
- asset def is expected economic benefits . (Not potential)
What are the gaap differences in presentation of FS
- has to be prepared in accordance with companies act 2006
- allows statement of income and retained earnings in place of a SOCIE
Gaap differences in inventories
- the selling price is entity specific not market
Gaap differences in assets held for sale
- there is no hfs category and therefore the asset must continue to be depreciated until disposal
Gaap difference in revenue
- does not have the 5 stage approach
Gaap differences in borrowing costs
There is the option to capitalise or expense. (Ifrs says any eligible must be capitalised)
Gaap differences in intangible assets
- choice to capitalise or expense the development costs (ifrs states if eligible it must be capitalised)
- intangibles all have a finite UL that does not exceed 10 years (ifrs can be indefinite)
Gaap differences for capital grants
- has to be deferred income method (ifrs allows netting off method)
Gaap difference of financial instruments
- has to be at transaction price (ifrs is at fair value)
Gaap difference in goodwill
- Amortised over useful life, assumed at 10 years (ifrs states it should be tested annually)
- impairment reversal is allowed
- gain on bargain purchase is negative goodwill which is shown as an asset (ifrs is it a profit)
Gaap differences in acquisition costs
- added to consideration (ifrs are expenses)
Gaap differences on nci
Only proportionate method allowed
Gaap differences on subsidiary’s
Can be excluded from consolidation if long term restrictions apply or if it is only intended for resale purposes
Gaap differences on associates and joint ventures
Goodwill is recognised
Gaap differences in accounting policies
Changes to cost model does not count as a change of policy and thus does not need a disclosure
Gaap differences related party transactions
Does not need to disclose transactions if the sub is wholly owned by the parent
Gaap differences
Does not need to have disclosures as long as the disclosure is part of the respective consolidated accounts
Gaap differences leases
Gets rid of the short term lease ruling
Introduces;
- finance leases - all risk and reward of ownership to the party using the asset
- charge as an rou asset
- operating leases - everything else
Charge as an expense
Gaap differences to ppe
Proceeds from the process of bring the ppe to the condition necessary are deducted from the ppe carrying amount
