Comparison between U.S. GAAP and International ... - Grant Thornton
Comparison between U.S. GAAP and International ... - Grant Thornton
Comparison between U.S. GAAP and International ... - Grant Thornton
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<strong>Comparison</strong> <strong>between</strong> U.S. <strong>GAAP</strong> <strong>and</strong> <strong>International</strong> Financial Reporting St<strong>and</strong>ards 147<br />
IFRS<br />
U.S. <strong>GAAP</strong><br />
<strong>and</strong> the Liquidation Basis of Accounting (formerly Going<br />
Concern).<br />
Date of authorisation for issue – disclosure<br />
An entity shall disclose the date when the financial<br />
statements were authorised for issue <strong>and</strong> who gave that<br />
authorisation. If the entity’s owners or others have the<br />
power to amend the financial statements after issue, the<br />
entity shall disclose that fact (IAS 10.17).<br />
The process involved in authorising the financial<br />
statements for issue will vary depending upon the<br />
management structure, statutory requirements, <strong>and</strong><br />
procedures followed in preparing <strong>and</strong> finalizing the<br />
financial statements (IAS 10.4).<br />
If an entity is not an SEC filer, then the entity shall<br />
disclose both of the following (ASC 855-10-50-1):<br />
• The date through which subsequent events have<br />
been evaluated<br />
• Whether that date is either of the following:<br />
<br />
The date the financial statements were issued<br />
The date the financial statements were<br />
available to be issued<br />
Unless the entity is an SEC filer, an entity shall disclose<br />
in the revised financial statements the dates through<br />
which subsequent events have been evaluated in both<br />
of the following (ASC 855-10-50-4):<br />
• The issued or available-to-be-issued financial<br />
statements<br />
• The revised financial statements<br />
CEO <strong>and</strong> CFO of SEC registrants must certify financial<br />
statements (Sarbanes-Oxley Act of 2002 (Section<br />
302)). The certification is outside of basic general<br />
purpose financial statements <strong>and</strong> not required by U.S.<br />
<strong>GAAP</strong>.<br />
Non-adjusting events after the reporting period – disclosure<br />
If non-adjusting events after the reporting period are<br />
material, non-disclosure could influence the economic<br />
decisions that users make on the basis of the financial<br />
statements. Accordingly, an entity shall disclose the<br />
following for each material category of non-adjusting<br />
event after the reporting period (IAS 10.21):<br />
• The nature of the event; <strong>and</strong><br />
• An estimate of its effect, or a statement that such an<br />
estimate cannot be made<br />
IAS 10.22 provides examples of non-adjusting events<br />
after the reporting period that would generally result in<br />
disclosure.<br />
Some nonrecognized subsequent events may be of<br />
such a nature that they must be disclosed to keep the<br />
financial statements from being misleading. For such<br />
events, an entity shall disclose the following<br />
(ASC 855-10-50-2):<br />
• The nature of the event<br />
• An estimate of its financial effect, or a statement<br />
that such an estimate cannot be made<br />
Reissuance of financial statements<br />
Reissuance of financial statements is not specifically<br />
addressed in IAS 10. However, IFRS recognises only one<br />
date through which events after the reporting period are<br />
An entity may need to reissue financial statements, for<br />
example, in reports filed with the SEC or other<br />
regulatory agencies. After the original issuance of the<br />
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