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Comparison Between Ifrs & U.S. Gaap

Autor:   •  May 22, 2017  •  Research Paper  •  340 Words (2 Pages)  •  1,079 Views

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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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