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U.S. GAAP Investments (Equity Method & Other) |
IFRS Investments (Equity Method & Other) |
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Use of equity method based on significant influence being wielded by investor
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Same as under U.S. GAAP (equity method investees referred to as associates under IFRS) |
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Extensive disclosures required of investees’ statement of financial position and income statement data |
Extensive disclosures required of associates’ balance sheet and income statement data
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Joint ventures generally accounted for by equity method, but some industries (e.g., construction) use proportional consolidation is traditional
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Joint ventures accounted for by equity method or proportionate consolidation, but IASB will soon ban proportionate consolidation and conform with U.S. GAAP treatment |
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No need to conform investor and investee accounting policies
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Need to conform investor and investee accounting policies |
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Investment property must be accounted for by cost (and depreciation) method
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Investment property can be accounted for by cost (and depreciation) method, or by fair value method with changes reported in income |
