IFRS- Business Combinations Flashcards
1
Q
What are the differences between US GAAP and IFRS with respect to business combinations?
A
US GAAP: Contingent assets and liabilities can be recongized when criterion is met
IFRS: Contingent assets are not recognized
US GAAP: Goodwill is allocated to the reporting units
IFRS: Goodwill is allocated to the cash generating units
US GAAP: Goodwill impairment testing has a qualitative pre-step and then, if needed, a two step approach
IFRS: Goodwill impairment testing is a one step approach
