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Wiley IFRS 2008

Barry J.Epstein
Eva K. Jermakowicz
 
 

IFRS Policies & Procedures

Barry J.Epstein
Eva K. Jermakowicz
 
Contact Us
Russell Novak & Co., LLP
225 W. Illinois Street,
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Chicago, IL 60654
1-312-464-3520
bepstein@rnco.com

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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 2008: 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

 

Embedded derivatives generally must be bifurcated and accounted for separately

Embedded derivatives generally must be bifurcated and accounted for separately

 

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 US GAAP

Joint project with IASB to address instruments with attributes of both liabilities and equity is on-going.

 

Joint project with FASB to address instruments with attributes of both liabilities and equity is on-going.

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 by email or 312-464-3520.