The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

3.1 CHAPTER PREVIEW

This chapter provides ready-made dual reporting tools to assist financial statement preparers in designing the structure of the statement of financial position under IFRSs, U.S. GAAP, and SEC rules and regulations, as well as to reconcile respective captions and line items.

The chapter first explains the statement of financial position in the context of commercial and industrial companies and of certain specialized industries, explains titles used, and specific requirements for small and medium-sized entities.

Then the chapter identifies the structural elements and alternative schemes of the statement of financial position under IFRSs, U.S. GAAP, and SEC guidance. It analyzes the equity versus the balance format and the account versus the report and the financial position forms, including their historical and geographic implications. It goes on with contrasting a classified to an unclassified statement, a liquidity criterion, and a mixed basis. It goes in depth into the notion of current items, and short- versus long-term classification, including the current developments under the Financial Statement Presentation Project. It contrasts the sorting order of IFRSs to U.S. GAAP balance sheets, as well as totalization requirements. Entities must be aware of the IFRSs thresholds for current operating assets and liabilities and other current assets and current liabilities, as compared with U.S. GAAP and the different definitions of the operating cycle. They must understand ...