1. IFRS v/s US GAAP
Presented by:
Anand Shivraman-03
Ananth Venkitraman-04
Ashwin Govindankutty- 05
Anish Skaria-09
Ann Grace Chettiar-10
Ashwini Pisharody-34

2. IFRS
An independent, not-for-profit private sector organisation working in
the public interest.
Its principal objectives are:
• to develop an international financial reporting standards (IFRSs)
through its standard-setting body, the IASB
• to promote the its use and application.
• to meet the needs of emerging economies and SME’s
• to promote and facilitate adoption of IFRSs

3. GAAP
• Financial Accounting Standards Board (FASB)
• the Governmental Accounting Standards Board (GASB)
• Federal Accounting Standards Advisory Board (FASAB)
• Moving from US GAAP to IFRS
• IFRS - "principles based“
• U.S. GAAP - "rules based.”

4. Differences
1) Intangibles
2) Inventory Costs
3) Write downs

5. Issue IFRS US GAAP
Documents •Balance Sheet •Balance sheet
included in the •Income statement •Income statement
financial •Changes in equity •Statement of
statements •Cash flow statement comprehensive income
•Footnotes •Changes in equity
•Cash flow statement
•Footnotes
Balance sheet •Long Term Assets and •On GAAP Statements,
Liabilities are listed first on starts with current assets
IFRS statements. and liabilities.
•recommends separation
• Requires separation of
of current and noncurrent
current and noncurrent assets and liabilities
assets and liabilities

6. Issue IFRS US GAAP
Deferred taxes Shown as separate Included with assets
line items on the and liabilities
balance sheet
Minority interests Included in equity as Included in liabilities
a separate line item as a separate line
item
Extraordinary items Prohibited infrequent
Bank overdrafts May be included in Charged as a
cash if used in cash financing activity
management

7. IFRS GAAP
Use of cost formula Same Not same
Classification: •Operating/ investing operating
• Interest paid •Operating/ financing
• Interest received
Basis of Revalued / historic Historic cost
measurement cost

8. Comparative Information

9. References
 http://www.investopedia.com
 http://www.readyratios.com
 http://www.readyratios.com/reference/accounting/us_gaap.html
 http://www.ey.com/Publication/vwLUAssets/US_GAAP_v_IFRS:_
The_Basics/$FILE/US%20GAAP%20v%20IFRS%20Dec%20201
1.pdf
 http://www.dummies.com/how-to/content/comparing-us-gaap-
and-ifrs-accounting-systems.html
 http://www.ifrs.org/Pages/default.aspx

10. Thank you