Write a 3 page essay on In this writing assignment you must discuss and compare the existing GAAP standards with the comparable IFRS standard for either IFRS IAS 17: Leases or IAS 18: Revenue. (By the
Write a 3 page essay on In this writing assignment you must discuss and compare the existing GAAP standards with the comparable IFRS standard for either IFRS IAS 17: Leases or IAS 18: Revenue. (By the way, these links go to the actual discussion of what makes up these categorie.
Notably, the US GAAP has a detailed and a more industry-centered guidance than IFSR (Bowden, 2010). Their conceptual frameworks and principles are however, similar.
Both accounting packages have the same recognition criteria necessitating capitalized costs as parcel of the cost of an asset if economic benefits in future are possible and measurable (Street, 2012). Moreover, neither model offers specific guidance in considering the unit of account for use in exploitinglong-lived assets. Neither model allows capitalization of startup, overhead and administrative costs. Depreciation of long-lived assets under both models starts with the placement of an asset in service when it is ready for use. IFRS allows reevaluation of assets while GAAP does not.
Under IFRS, derecognition of an asset causes the inclusion of that item in the earnings while under GAAP, no losses or gains are inclusive in the earnings. Under decommission of liabilities, both US GAAP and IFRS necessitate that the costs of dismantling a property and restoring its site constitutes a part of the cost of that particular asset. A notable difference is that in IFRS, alterations to the liability resulting from the passage of time falls in the class of borrowing costs while under US GAAP, changes to liability resulting from time passage is an accretion expense (Bowden, 2010).
Amortization of intangible propertiesover their predicted uselifetime is pertinent in both accounting models. In both GAAPsets, if there is no predictable limit to the time over which an intangible asset can generate cash influxesto the entity, the useful life is indefinite and the asset cannot undergo amortization. Under US GAAP, interest derived from the investment of borrowed finances cannot offset interest incurrencesduring the time. For borrowings related to a qualifying asset,