1、BalanceSheet:whatarethedifferencesbetweenIFRSandUSGAAP?•Balance Sheet Terminology and Presentation Balance Sheet Terminology and PresentationHowareIFRSandUSGAAPdifferent?When preparing an IFRS balance sheet, assets are listed first, followed by equity, and then
2、 liabilities. This is different from a US GAAP balance sheet, which lists assets first, but then shows liabilities, with equity last. On an IFRS balance sheet, long‐term assets and long‐term liabilities are called noncurrentassetsandnoncurrentliabilities. Under
3、 US GAAP, these non‐current items are listed after current items. On an IFRS balance sheet the presentation is usually reversed: non‐current assets are listed before current assets, and non‐current liabilities are listed before current liabilities. US GAAP requ
4、ires that current assets be listed in liquidity order (i.e. from most liquid to least liquid), while on IFRS financial statements current assets are generally listed in reverse liquidity order. Howwoulditchangethefinancialstatements?To someone familiar with US
5、 GAAP balance sheets, an IFRS balance sheet may almost appear to be ‘upside down’. Assets are listed in nearly the opposite order from where they appear on a US GAAP balance sheet, and liabilities and equity are listed in reverse order. While the familiar accou
6、nts are all present, they will be in different locations from what financial statement users are used to seeing them. Whatcoulditmeanforbusinesses?It will take some time before financial statement users are used to the revised ordering of the balance sheet. Thi
7、s may cause minor confusion until everyone has adjusted to the new layout.
