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

Comparison between U.S. GAAP and International Financial Reporting Standards 8
with the basic premise that an entity applies IFRS for the first time on a fully retrospective basis. However,
acknowledging the cost and complexity of that approach, it then establishes various exemptions for topics
where retrospective application would be too burdensome or impractical (e.g. business combinations and
pension liabilities.) In planning the conversion, management must develop a detailed and specific
understanding of IFRS 1's implications on their business.
In July 2009, the IASB issued International Financial Reporting Standard for Small and Medium-sized Entities
(IFRS for SMEs). IFRS for SMEs is designed to meet the financial reporting needs of entities that (a) do
not have public accountability and (b) publish general purpose financial statements for external users. The
term Small and Medium-sized Entities is not associated with any size criteria in the Standard. The Standard
has essentially been designed to work as a standalone document, with no mandatory cross references to
full IFRS. IFRS for SMEs often permits simplified recognition and measurement and reduces the amount
of disclosure required, compared to full IFRS.
Also, in November 2009, the IASB issued IFRS 9, Financial Instruments. An amendment to IFRS 9 was issued in
October 2010. Entities are required to apply IFRS 9 for annual periods beginning on or after January 1, 2013.
Earlier application is permitted. Note that this Comparison does not include IFRS 9.
IFRS 9 Appendix C includes the amendments to other IFRS resulting from IFRS 9. Those IFRS are as follows:
IFRS 1, First-time Adoption of International Financial Reporting Standards
IFRS 3, Business Combinations
IFRS 4, Insurance Contracts
IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations
IFRS 7, Financial Instruments: Disclosures
IAS 1, Presentation of Financial Statements
IAS 2, Inventories
IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors
IAS 12, Income Taxes
IAS 18, Revenue
IAS 20, Accounting for Government Grants and Disclosure of Government Assistance
IAS 21, The Effects of Changes in Foreign Exchange Rates
IAS 27, Consolidated and Separate Financial Statements
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