C3_Under IFRS, companies have more discretion

in what information is placed on their financial

statements than under U.S. GAAP, because IFRS is
based on broad principles that allow for
management to disclose information more
tailored to their needs. U.S. GAAP tends to be
more specific as to the required disclosure needed
in a specific situation.
Why? b\c it has highest quality. By highest quality, we
mean standards that provide users of financial
statements with information that is clear, useful, and
relevant to their needs, while considering whether the
expected benefits of that information justify the costs of
providing and using it.

significant progress has been made toward achieving

greater comparability in accounting standards on an
international level. The increasing number of countries
around the world that have decided to require (or permit)
the use of IFRS has increased the comparability of
reporting internationally.
Universal financial reporting method that allows international businesses to understand
each other and work together.

Over 110 countries, including those in the European Union

1-Ifa loss contingency is to be recorded, the measurement

requirements under IFRS and U.S. GAAP differ in some regards.
Specifically, IFRS requires that the best estimate of the
expenditure is recorded, while U.S. GAAP requires that if some
amount appears to be a better estimate than any other
amount , that amount shall be accrued.27 Both IFRS and U.S.
25 See IAS 37 paragraph 23. 26 See ASC Section 450-20-20. 27
See ASC paragraph 450-20-30-1. 30 GAAP provide guidance for
circumstances in which a range of possible outcomes exists. IAS
37 defines best estimate as expected value, which is the
midpoint of the range for situations in which a continuous range
of equally possible outcomes exist. In similar situations, U.S.
GAAP requires that the minimum amount in the range is accrued
when no amount within the range is a better estimate than any
other amount. The approach required under U.S. GAAP is based
on the fact that even though the minimum amount in the range
is not necessarily the amount of loss that will be ultimately
determined, it is not likely that the ultimate loss will be less than
the minimum amount.
 B3- The income statement under U.S. GAAP is either a single-step
or multiple-step format. Under IFRS, expenses are classified by
nature or function. For example, by nature, wages would be
classified. By function, descriptions such as manufacturing would
be reported. A great deal of leeway is available under IFRS for
financial statement issuers. The income statement under both U.S.
.GAAP and IFRS classifies comprehensive income as part of equity

-On the balance sheet under U.S. GAAP, we

usually list current assets first, then go down the
asset side in the order of liquidity. Also, we use
historical cost for purchases and the recording of
long-term assets. Under IFRS, specific items are
required to be reported on the balance sheet;
regarding U.S. GAAP, this is not a requirement. For
IFRS, noncurrent assets are typically listed first,
and often at fair value. The term net assets which
are total assets - total liabilities, may be placed on
the financials as well.