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

3.2 CONTEXT OF THE STATEMENT OF FINANCIAL POSITION

3.2.1 Titles of Statement

3.2.1.1 Titles in Accounting Pronouncements

The 2007 Revision of IAS 1 moved to the expression statement of financial position to focus on the underlying concept and align with the auditing terminology. IAS 1 (2005) used the title balance sheet,1 which had long been the title most frequently used by business entities. The EU also uses balance sheet in its accounting directives.

As the U.S. Concepts acknowledge, a business enterprise that reports under U.S. GAAP generally uses the titles statement of financial position or balance sheet.2 CON 8 now refers to the statement of financial position. Paragraph 3.2.3 mentions the terms that are applicable to certain specialized industries. For example, Subsection 962-205-S99-1 (Regulation S-X) uses balance sheet, but favors statement of financial condition when treating an employee stock purchase or savings and similar plans.3 Form 20-F uses both balance sheet and statement of financial position.4 The AICPA Accounting Trends & Techniques shows that, from 2009 to 2002, approximately 96% of U.S. GAAP companies surveyed used the title balance sheet. The remaining companies preferred either the designation statement of financial position or the title statement of financial condition.5

3.2.1.2 Titles in Auditing Pronouncements

As per the U.S. accounting and auditing standards, entities that adopt a special purpose framework (i.e., a comprehensive basis of accounting ...