IFRS (pt.3)

Trying not to keep you in suspense. Here's our next segment on IFRS....

We need to realize that there are a few presentation differences with regard to the current status of IFRS/GAAP convergence.

Here are some key points: 

GAAP: 
-Firms can change reporting date
-Reporting period more than a year not permitted
-Financial statements are required separately for the transition period

IFRS:
-Reporting date change requires extraordinary circumstances
-Reporting period more than a year permitted for transition period
-Financial statements not required separately for the transition period


Jargon for IFRS includes the "true and fair" while GAAP requires "present fairly" to describe the quality of financial statements.