Comparison Between Ifrs & U.S. Gaap
Autor: Aniruddha Rantu • May 22, 2017 • Research Paper • 340 Words (2 Pages) • 1,332 Views
APPENDIX C: COMPARISON EXHIBIT (ILLUSTRATION)
Comparison between IFRS & U.S. GAAP
Accounting Policy | IFRS Company: Journey Group Plc. | U.S. GAAP Company: Dean Foods Co. | Comment |
Inventory valuation | FIFO | FIFO | As they are using same method, it is acceptable. |
Property, plant and equipment | Straight line method | Straight line method | Similar method is used by two companies and it is acceptable. |
Cash flow presentation | Direct method | Direct method | Similar method. And that is acceptable because this method is used by many companies. |
Revenue recognition | Sales basis | Sales basis | It is acceptable because both of them have same revenue recognition method. |
Good Will | Impaired | Impaired | Both goodwill are impaired and this is acceptable. |
Comparison between BFRS & U.S. GAAP
Accounting Policy | BFRS Company: Olympic Industries Ltd. | U.S. GAAP , Company: Dean Foods Co. | Comment |
Inventory valuation | Weighted average cost | FIFO | Two companies use different methods of inventory valuation and it is not acceptable, |
Property, plant and equipment | Straight line method | Straight line method | Here both companies follow similar depreciation method. Hence the method is same so that is acceptable. |
Cash flow presentation | Direct method | Direct method | It is acceptable because both of them use the most popular method of cash flow. |
Revenue recognition | Cash basis | Sales basis | Revenue recognition of the two company are different standard yet being from the Same industry. Thus not acceptable |
Good Will | Impaired | Impaired | Goodwill was impaired by same method which makes it acceptable. |
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