|
Dr. Epstein served as the lead author of 14 annual editions of Wiley IFRS (1997 through 2010), and 26 annual editions of Wiley GAAP (1985 through 2010), all published by John Wiley & Sons.
|
|
|
 |
| |
Accounting for Long Term Liabilities
IFRS versus GAAP
Listed below are some of the major differences between International Financial Reporting Standards (IFRS) and U.S. GAAP in accounting for long term liabilities. This material is excerpted from Wiley IFRS 2010: Interpretation and Application of International Financial Reporting Standards.
|
U.S. GAAP: Long Term Liabilities |
IFRS: Long Term Liabilities |
|
Convertible debt classified as liability |
Convertible debt assigned to both debt and equity based on relative fair values
|
| Entities should reassess at the end of each reporting period whether an embedded derivative should be separated |
Entities should reassess at the end of each reporting period whether an embedded derivative should be separated only if there is a change in the terms that significantly modifies the cash flows
|
|
Noncurrent presentation of defaulted debt if waiver granted before statement issuance date |
Noncurrent presentation of defaulted debt if waiver granted before balance sheet date only
|
|
Equity-like instruments giving holder right to demand cash settlement, or with defined cash settlement terms, must be classed as liabilities
|
Similar to U.S. GAAP |
|
Joint project with IASB to address instruments with attributes of both liabilities and equity is ongoing.
|
Joint project with FASB to address instruments with attributes of both liabilities and equity is ongoing. |
Contact IFRS international accounting expert Dr. Barry Epstein, CPA for more information. Learn more about Dr. Epstein at www.ifrsaccountant.com. He can be reached at BEpstein@SSandG.com or 312-464-3520.
|
|
