Comparison between U.S. GAAP and International ... - Grant Thornton

Comparison between U.S. GAAP and International Financial Reporting Standards 19
IFRS
items either in the statement of comprehensive income
or in the notes (IAS 1.97).
Additional line items, headings and subtotals are
presented where relevant to an understanding of
financial performance (IAS 1.85).
For financial instruments (see Section 7) and
investment property (see Section 4.2), some unrealised
gains from fair value adjustments are included in the
income statement.
In IFRS, there are instances where gains or losses
initially recognised in equity are reclassified to the
income statement on subsequent realisation (e.g.
available-for-sale investments, foreign exchange losses
on net investment in subsidiaries, and hedged items).
U.S. GAAP
separate component of income from continuing operations
(ASC 225-20-45-16).
Under ASC 320 (see Section 7, “Financial instruments”),
unrealized gains and losses on investments in certain
debt and equity securities classified as trading are
recognized as fair value adjustments through the income
statement. Further, since U.S. GAAP follows a cost model
for investment property (see Section 4.2, “Investment
property”), unrealized gains on investment property are
not recognized while losses on impairment of long-term
assets to be held and used (see Section 4.4,
“Impairment”) are recognized and included in the income
statement.
Similar to IFRS. See Section 7.1, “Recognition and
measurement of financial assets” and Section 10.1,
“Foreign currency translation.” Amounts related to pension
and other postretirement benefit plans that are initially
recognized in other comprehensive income are also
reclassified according to the recognition provisions of
ASC 715.
2.4 Statement of changes in equity
IFRS
U.S. GAAP
Relevant guidance: IAS 1 Relevant guidance: ASC 810
An entity shall present a statement of changes in equity
showing in the statement (IAS 1.106):
• Total comprehensive income for the period,
showing separately the total amounts attributable
to owners of the parent and to non-controlling
interests
• For each component of equity, the effects of
retrospective application or retrospective
restatement recognised in accordance with IAS 8
• For each component of equity, a reconciliation
between the carrying amount at the beginning and
the end of the period, separately disclosing
changes resulting from:
Profit or loss
An entity shall disclose for each reporting period either in
the consolidated statement of changes in equity, if
presented, or in the notes to consolidated financial
statements, a reconciliation at the beginning and the end
of the period of the carrying amount of total equity, equity
attributable to the parent, and equity attributable to the
noncontrolling interest. That reconciliation shall separately
disclose (see ASC 810-10-55-4G through 55-4L)
(ASC 810-10-50-1A):
• Net income
• Each component of other comprehensive income
• Transactions with owners acting in their capacity as
owners, showing separately contributions from and
distributions to owners
Each item of other comprehensive income
Transactions with owners in their capacity as
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