US GAAP vs.
IFRS Cheat Sheet
Income Statement
Balance Sheet
Statement of Cash Flows
Quarterly/Interim Reports
Non-standardized metrics
Development Costs
Income Taxes
Investment Property
Biological Assets
Leases
Recognized when >75% likely, measurement methods
Contingent Liabilities
Inventory
Fixed Assets
Intangible Assets
Revenue
Leases
Debt Issuance Costs
This is only a general summary of some main areas. Consult applicable standards for specific information and guidance.
US GAAP
Financial Statement Presentation
3 years required
Current before non-current
3 years required
Interest expense, interest income and dividends
received in Cash from Operations
Each interim period is an integral part of fiscal year
MD&A required
Not allowed directly on the financial statements
themselves
Alternative EPS prohibited
Recognition or Classification
Expensed, exceptions include software and movies
All Deferred Tax Assets recognized, offset with a
Valuation Allowance
Not separate from PPE
Included in Inventory
Categories for operating and finance leases on
balance sheet
differ
Measurement
LIFO allowed with other methods
Method can vary across Inventory groups
Historical cost
Cost segregations allowed, not required
Historical cost
Key Similarities in Recent Changes
ASC 606 effective 2018
Converged standard that focuses on a conceptual
framework using a 5-step process for recognizing
revenue.
Minor differences in implementation and updates.
ASC 842 effective 2019.
Leases over 12 months recognized as Right of Use
Assets on Balance Sheet with corresponding Lease
Liabilities. Distinguishes between Operating and
Finance Leases.
ASU 2015-03
Debt issuance costs are now netted against the
outstanding debt
IFRS
2 years allowed
Non-current before current
2 years allowed
Flexibility with location of interest expense, interest
income and dividends
Each interim period is a stand-alone period
MD&A not required
Allowed on the financial statements themselves
Alternative EPS allowed
Capitalized when specific conditions are met
Deferred Tax Assets only recognized when probable
A separate category
Measured at fair value, separate from Inventory
Single category on balance sheet
Recognized when >50% likely, measurement methods
differ
Referred to as Provisions
LIFO not allowed
Same method required with Inventory of similar
nature
Fair value allowed
Separate depreciation of separable components
required
Fair value allowed
IFRS 15 effective 2018
Converged standard that focuses on a conceptual
framework using a 5-step process for recognizing
revenue.
Minor differences in implementation and updates.
IFRS 16 effective 2019.
Leases over 12 months recognized as Right of Use
Assets on Balance Sheet with corresponding Lease
Liabilities. No Finance/Operating Lease categories.
No change
Debt issuance costs are netted against the
outstanding debt