Isfr Vs Us Gaap; Financial Ratios
Autor: deluna14 • June 17, 2012 • Essay • 463 Words (2 Pages) • 2,115 Views
LEVERAGE RATIO
We believe that the difference in the resulting ratios from using U.S. GAAP or Mexican IFRS is a consequence mainly on the way assets are netted between these principles and the effect this has on the asset value employed for this ratio. While Mexican IFRS and IFRS in general are very demanding on the way derivatives are treated, US GAAP is more open and flexible. (1) (2)
INVENTORY TURNOVER RATIO
We believe that the difference in the resulting ratios from using U.S. GAAP or Mexican IFRS is a consequence mainly on the cost carrying values that are employed and how these affect the value of the inventory used to calculate these ratios. On Mexican IFRS inventory is carried at cost, while US GAAP employs a different criteria, depending on the industry. (2) (4)
CURRENT RATIO
The main difference in employing Mexican IFRS or US GAAP that affects this ratio is the way deffered taxes are classified, even though the effect of this usually is not large. This reflects directly on the company´s current liabilities. (3)
(1)
Global Credit Portal
RatingsDirect
Standard & Poor´s April 15, 2010
www.standardandpoors.com/ratingsdirect
Sylvie Dalmaz, Paris (33) 1-4420-6682; sylvie_dalmaz@standardandpoors.com
(2)
IFRS, US GAAP and Mexican FRS: similarities and differences*
The Summary A comparison of IFRS, US GAAP and Mexican FRS
PricewaterhouseCoopers 2009
pwc.com/mx/ifrs
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