What is the difference between US GAAP and IFRS for property plant & equipment?

What is the difference between US GAAP and IFRS for property plant & equipment?

GAAP includes a provision on how to measure “nonmonetary exchanges” for assets, while IFRS does not. A nonmonetary exchange uses the fair market value of the asset given up in the transaction or the asset received, whichever is more clearly evident.

What are some of the differences between US GAAP and IFRS in the presentation of the statement of cash flows?

The Cash Flow Statement GAAP prescribes that interest paid and interest received should be classified as operating activities, while international standards are a bit more flexible. Under IFRS, a firm can choose its own policy for classifying interest based on what it considers to be appropriate.

How do US GAAP and IFRS differ in their use of present values when measuring contingent liabilities?

How do U.S. GAAP and IFRS differ in their use of present values when measuring contingent liabilities? In IFRS, present values must be used to measure a liability whenever the time value of money is material. That requirement does not exist for U.S. GAAP.

Is U.S. GAAP better than IFRS?

By being more principles-based, IFRS, arguably, represents and captures the economics of a transaction better than GAAP. Some of the differences between the two accounting frameworks are highlighted below.

What is a major difference between US GAAP and IFRS affecting the revenue recognition practice?

IFRS sticks more closely to the principle that revenue should be recognized as value delivered, while the industry-specific rules under GAAP give the construction company another option outside that broad principle.

Why does US use GAAP and not IFRS?

The SEC cites IFRS’s lack of consistency and believes IFRS is underdeveloped when it comes to small-scope issues in reporting. The SEC believes that the FASB is the better standard-setting body when it comes to protecting investors and thus believes it important to continue using GAAP as the set of reporting standards.

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