U.S. GAAP v. IFRS: The Basics - Financial Executives International
U.S. GAAP v. IFRS: The Basics - Financial Executives International
U.S. GAAP v. IFRS: The Basics - Financial Executives International
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Other differences include: (i) definitions of a derivative and embedded derivative, (ii) cash flow<br />
hedge — basis adjustment and effectiveness testing, (iii) normal purchase and sale exception,<br />
(iv) derecognition of financial assets, (v) foreign exchange gain and/or losses on AFS investments,<br />
(vi) recording of basis adjustments when hedging future transactions, (vii) macro hedging, (viii) hedging<br />
net investments, (ix) impairment criteria for equity investments, and (x) puttable minority interest.<br />
Convergence<br />
In 2007, the IASB exposed a discussion paper to propose using one measurement model for fair<br />
value whenever fair value is required, which is consistent with the concepts in FAS 157. Both<br />
Boards appear to be moving towards ultimately measuring all financial instruments at fair value<br />
with changes in fair value reported through net income.<br />
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