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U.S. GAAP Treatment |
IFRS Treatment |
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No required income statement captions, and either single-step or multiple-step format can be used
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Minimum captions in income statement are prescribed under IFRS |
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Little specific guidance as to form, but ex-penses are to be classed by function (e.g., cost of sales, administrative, etc.)
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Expenses can be classed by function or nature (e.g., salaries, cost of goods sold, etc.) |
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Extraordinary items classification permitted under limited circumstances, with net-of-tax presentation, and unusual items can also be segregated within operating income (but not tax effected); will be revised to mirror IFRS
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Extraordinary classification is banned, but unusual items can be segregated |
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Estimated operating results of a discontinuing operation are included in the measurement for the expected gain or loss on disposal; timing of segregation of discontinuing operations from continuing operations may differ from that under IFRS; direct continuing cash flows or involvement in operations preclude discontinuing operations display
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Actual operating results of a discontinuing operation are reported as incurred; timing of recognition of gain or loss in discontinuance and income or loss from activities of the dis-continuing operation may differ from US GAAP |
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Broader definition of discontinued operations than under IFRS, either a reportable business or geographical segment, or reporting unit, subsidy, or asset group
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Narrow definition of discontinued operations as being reportable business or geographical segment or major component |
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Restructuring costs recognized when there is little discretion to avoid costs; most costs recognized when later incurred
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Restructuring costs recognized when an-nounced or commenced, which is earlier than under US GAAP |
| Other comprehensive income items can be presented in separate statement, combined with income statement, or in changes in stockholders’ equity statement |
Statement of recognized income and expense can be presented, which then precludes state-ment of stockholders’ equity; alternatively, items can be included in statements of changes in equity
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Joint financial reporting project with IASB in progress, which may require inclusion of changes in other comprehensive income in income statements
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Joint project with FASB; decision to require single statements of recognized income and expense, replacing two separate statements under current IFRS |
