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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.
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Accounting for Segment Reporting
IFRS versus GAAP
Listed below are some of the major differences between International Financial Reporting Standards (IFRS) and U.S. GAAP in accounting for segment reporting. This material is excerpted from Wiley IFRS 2010: Interpretation and Application of International Financial Reporting Standards.
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U.S. GAAP: Accounting for Segment Reporting |
IFRS: Accounting for Segment Reporting |
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Management approach provides flexibility in defining segments; segment results using internal managerial approach OK, even if these differ from financial statements |
Approach very similar to U.S. GAAP recently adopted
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Disclosures based on primary classification (either geographic or product-based), with some additional entity-wide items (major customers, etc.) not necessarily lines of business or geographical areas, however
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Defines segments based on components of the entity that are businesses, having operating results reviewed by the chief operating decision maker, and having discrete financial information; these are reportable if one of three threshold criteria (sales, profit or assets) are met |
| No segment result definition given, no requirement for capital expenditures, liabilities disclosure by segments |
Segment result defined, also require capital expenditures and liabilities segment disclosures; entity-wide and some geographic analyses are also required
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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.
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