Tangible and Intangible Assets:

Basis

GAAP:

Historical Cost

IFRS:

Historical or Revalued Amt (except Goodwill)

Tangible and Intangible Assets

Reviews for Impairment

GAAP:

When circumstances indicate that CV Amt may not be recoverable

IFRS:

Performed at EACH reporting date

Tangible and Intangible Assets

Impairment Method

GAAP:

2-Step Approach

if recoverability test failed, loss= FV-CV

IFRS:

1-Step Approach

loss= CV- recoverable amount (higher of NRV or PV-cost to dispose)

Tangible and Intangible Assets

Reversal of Impairment

GAAP:

NOT ALLOWED for held for use

IFRS:

ALLOWED when change

in the economic conditions

OR

in the way the asset is used

Tangibles and Intangibles Assets

Depreciation

GAAP:

Component Depreciation allowed

(seldom use)

IFRS:

Component Depreciation REQUIRED!

Tangible and Intangible Assets

Development Costs

GAAP:

Expensed AS incurred!

IFRS:

Capitalized once

technical & economic feasiblity demonstrated

IFRS

Accounting for Revalution

1. Record depreciation on cost basis

Depreciation Exp.     200,000

         Accum. Deprec.         200,000

2. Record Revalution Surplus=FV-CV

*FV becomes new basis for asset

Accum. Deprec.      200,000

           Plants Assets             100,000

           Revalution Surplus  100,000

Reported on the Comprehensive Income. Present in separate statement combined with income statement, Changes SHE

IFRS

Component Depreciation

REQUIRED!

specifies that any significant part of a depreciable asset have a difference estimated useful lives

-------should be separately depreciated

Journal Entry:

Depre. Exp- Airplane/frame  XXX

Depre. Exp- Airplane/engine XXX

Depre. Exp- Airplane/other   XXX                      Accum Depre- Airplane XXX

Current and Contingent Liabilities

Current Portion of Long-Term Debt

GAAP:

Classified as current

-unless agreement refinance completed before FS issued

IFRS:

Classifed as current

-unless agreement refinance completed before REPORTING DATE

Current and Contingent Liablities

Definition of PROBABLE

GAAP:

Likey (higher threshold)

70-75% chance

IFRS:

More likely than not (lower threshold)

more than 50% chance

Current and Contingent Liabilities

Range of Estimates

to be accrued for a contingent libability/provision

GAAP:

Accrue Minimum

IFRS:

Accrue MID-Point

Current and Contingent Liabilites

use of the term "contingent liability"

GAAP:

Any liability that is uncertain: amt & timing.

Accrue as a liab. - probable & reasonably est.

IFRS:

Not recorded as liability

Current and Contingent Liabilites

Use of term "provisions"

GAAP:

NOT USED

IFRS:

Accrued Liability uncertain:timing or amt

Current and Contingent Liabilites

Disclosure

GAAP:

No similiar requirement

IFRS:

Reduced disclosure if could put company greater chance of losing lawsuit

Non-current Assets

Bonds Payable

GAAP:

Premium or Discount

Recorded (adjunct or contra acct)

Amortize to interest exp.

IFRS:

Recorded for Proceeds received ONLY

Amortization is recorded in BP

Non-current Assets

IFRS: Issuance of Bonds

Interest pmt and amortization

IFRS Journal Entries:

Cash          XXX

   Bonds Payable  XXX

Interest Exp.  XXX

            Cash                 XXX

            Bonds Payable XXX

Stockholders' Equity, Investments, Leases, and Cash Flow

Revalution Surplus

IFRS ONLY

line item in SHE section

Permitted to REVALUE PPE under IFRS

*Part of general "reserve"

Stockholder's Equity, Investment, Leases, and Cash Flow

Investments

*Unrealized Gain/Loss on AFS

GAAP:

Reported OCI

IFRS:

Reported DIRECTLY in equity

Stockholder's Equity, Investment, Leases, and Cash Flow

Investments

 *Reclassifications*

GAAP:

Permits Reclassification

IFRS:

PROHIBITS reclassification in/out of trading

LEASES

*# of Interpretations*

GAAP:

> 30

IFRS:

Only 3

Leases

*Specification of Criteria*

GAAP:

very "rules based"

Brightline 75% to determine leasing trans transfers the risk/rewards to ownership

IFRS:

Provisions

can't structure to avoid capital lease "substanically all ..."

Leases

*Disclosure*

GAAP:

Extensive Dislosure

IFRS:

Significally less detail

Classification for Statement of Cash Flows

Interest Paid:

GAAP- OA                                       IFRS- OA/IA

Interest Received:

GAAP- OA                                      IFRS- OA/IA

Dividends Paid:

GAAP-