IFRS vs US GAAP Nonfinancial assets

IFRS vs US GAAP Nonfinancial assets

IFRS vs US GAAP Nonfinancial assets – The guidance under US GAAP and IFRS as it relates to nonfinancial assets (e.g., intangibles; property, plant, and equipment, including leased assets; inventory; and investment property) contains some significant differences with potentially far-reaching implications. These differences primarily relate to differences in impairment indicators, asset unit of account, impairment measurement and subsequent recoveries of previously impaired assets. Overall, differences for long-lived assets held for use could result in earlier impairment recognition under IFRS as compared to US GAAP. IFRS vs US GAAP nonfinancial assets

In the area of inventory, IFRS prohibits the use of the last in, first out (LIFO) costing methodology, which is an allowable … Read more