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 28<br />
IFRS<br />
in excess of the cumulative impairment loss that has been recognised either in accordance with<br />
IFRS 5 or previously in accordance with IAS 36 (IFRS 5.21).<br />
A gain is recognised for any subsequent increase in fair value less costs to sell of a disposal group<br />
(IFRS 5.22):<br />
• To the extent that it has not been recognised in accordance with IFRS 5.19<br />
• Not in excess of the cumulative impairment loss that has been recognised, either in<br />
accordance with IFRS 5 or previously in accordance with IAS 36 on the non-current assets<br />
that are within the scope of the measurement requirements of IFRS 5<br />
An entity shall not depreciate (or amortise) a non-current asset while it is classified as held for sale<br />
or while it is part of a disposal group classified as held for sale. Interest <strong>and</strong> other expenses<br />
attributable to the liabilities of a disposal group classified as held for sale shall continue to be<br />
recognised (IFRS 5.25).<br />
Changes to a plan of sale<br />
IFRS 5.26-.29 deal with situations where assets or disposal groups previously classified as held<br />
for sale no longer meet those criteria. The asset or disposal group is no longer classified as held<br />
for sale <strong>and</strong> disclosure of the circumstances surrounding the change is required (IFRS 5.26 <strong>and</strong><br />
.42).<br />
After the change, the assets are remeasured at the lower of their carrying amount prior to the<br />
classification as held for sale, adjusted for any depreciation, amortisation or revaluations, or their<br />
recoverable amount at the date of the subsequent decision to sell (IFRS 5.27).<br />
Non-current assets that are to be ab<strong>and</strong>oned<br />
An entity shall not classify as held for sale a non-current asset (disposal group) that is to be<br />
ab<strong>and</strong>oned. This is because its carrying amount will be recovered principally through continuing<br />
use. However, if the disposal group to be ab<strong>and</strong>oned meets the criteria in IFRS 5.32(a)-(c), the<br />
entity shall present the results <strong>and</strong> cash flows of the disposal group as discontinued operations in<br />
accordance with IFRS 5.33-.34 at the date on which it ceases to be used (IFRS 5.13).<br />
U.S. <strong>GAAP</strong><br />
Changes to a<br />
plan of sale<br />
Similar to IFRS<br />
(ASC 360-10-<br />
35-44 through<br />
35-45 <strong>and</strong> 45-<br />
7).<br />
Long-lived<br />
assets to be<br />
ab<strong>and</strong>oned<br />
Similar to IFRS.<br />
Long-lived<br />
assets to be<br />
ab<strong>and</strong>oned<br />
continue to be<br />
classified as<br />
long-lived<br />
assets to be<br />
held <strong>and</strong> used<br />
(ASC 360-10-<br />
45-15, ASC<br />
360-10-35-47<br />
through 35-48).<br />
Timing considerations<br />
If the held for sale criteria in IFRS 5.7-.8 are met after the reporting period, an entity shall not<br />
classify a non-current asset (disposal group) as held for sale in those financial statements when<br />
issued. However, when those criteria are met after the reporting period but before the<br />
authorisation of the financial statements for issue, the entity shall disclose the information specified<br />
in IFRS 5.41(a), (b), <strong>and</strong> (d) in the notes (IFRS 5.12).<br />
Similar to IFRS<br />
except that for<br />
those situations<br />
where the<br />
criteria are met<br />
after the<br />
balance sheet<br />
date but before<br />
issuance of the<br />
financial<br />
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