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

More documents

Recommendations

Info

Comparison between U.S. GAAP and International Financial Reporting Standards 68 IFRS A change in the acquirer’s deferred tax asset as a result of a business combination shall not be accounted for as part of the business combination and therefore, shall not be accounted for as an adjustment to goodwill (IAS 12.67). U.S. GAAP acquisition-date accounting for the business combination. Similar to IFRS, a change in the acquirer’s valuation allowance on its previously existing deferred tax asset as a result of a business combination shall not be accounted for as part of the business combination and therefore, shall not be accounted for as an adjustment to goodwill. Such change shall be recognized as an income tax benefit or credited directly to contributed capital (ASC 805-740-30-3). Share-based payment Deferred taxes shall be recorded for the difference between the amount of the tax deduction (or future tax deduction) and cumulative remuneration expense related to share-based payment awards. Deferred tax assets shall be adjusted each period to the amount of tax deduction that the entity would receive if the award was tax deductible as of the reporting date based on the current market price of the shares (IAS 12.68B). Deferred tax assets shall be based on the amount of compensation cost recorded. Unlike IFRS, the deferred tax adjustment for current share price shall be recorded on settlement (ASC 718-740-25-2 through 25-3). Presentation and disclosure Deferred tax assets and liabilities shall be offset if the entity has a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax assets and tax liabilities relate to income taxes levied by the same taxing authority on either • The same taxable entity; or • Different taxable entities that intend either to settle current tax assets and liabilities on a net basis, or to realise the asset and settle the liability simultaneously (IAS 12.74-.76) Deferred tax assets and liabilities are presented as separate line items in the statement of financial position. If a classified statement of financial position is used, deferred tax assets and liabilities shall be classified as noncurrent (IAS 12.IN11 and IAS 1.56). All entities must disclose an explanation of the relationship between tax expense and accounting profit using either or both of the following formats (IAS 12.81c): All current deferred tax assets and liabilities shall be offset and presented as a single amount and all noncurrent deferred tax assets and liabilities shall be offset and presented as a single amount for a particular tax paying component of an entity and within a particular jurisdiction (ASC 740-10-45-6). Unlike IFRS, in a classified balance sheet deferred tax assets and liabilities shall be presented as separate line items and classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax asset or liability not related to an asset or liability for financial reporting purposes shall be classified according to the expected reversal date of the temporary difference. The valuation allowance for a given tax jurisdiction shall be allocated between current and noncurrent deferred tax assets for that jurisdiction on a pro rata basis (ASC 740-10-45-4 through 45-10). Public companies must disclose a reconciliation using percentages or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to that amount of income tax expense that © 2011 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd
Comparison between U.S. GAAP and International Financial Reporting Standards 69 IFRS • A numerical reconciliation between tax expense (income) and the product of accounting profit multiplied by the applicable tax rate(s) including disclosure of the basis on which the applicable tax rate is computed • A numerical reconciliation between the average effective tax rate and the applicable tax rate, including disclosure of the basis on which the applicable tax rate is computed U.S. GAAP would result from applying domestic federal statutory tax rates to pretax income from continuing operations. Nonpublic enterprises must disclose the nature of significant reconciling items but may omit a numerical reconciliation (ASC 740-10-50-12 through 50-13). © 2011 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd
Page 1 and 2:
Comparison between U.S. GAAP and In
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18: Comparison between U.S. GAAP and In
Page 67: Comparison between U.S. GAAP and In
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
show all

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

Create successful ePaper yourself

Delete template?

Save as template?