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

KEY ELEMENTS AND DECISIONS

Paragraph 3.2.1

An entity should make sure that the title of the statement of financial position selected denotes use of IFRSs; When a title turns out to be the same under both IFRSs and U.S. GAAP, an entity should state prominently the basis of accounting so as to enhance clarity.

Paragraph 3.3.1

Select the format and form of the statement of financial position; Decide, also on the grounds of local laws, jurisdictional and company practices, whether to present financial reclassification in management commentary.

Paragraphs 3.3.2 and 3.3.3

Under IFRSs, use a classified statement of financial position, unless specific criteria apply; Justify the existence of those specific criteria when using either a liquidity classification or a mixed basis; Reconcile and justify any use of different formats for IFRSs and U.S. GAAP purposes; Restate retrospectively any change in presentation format; Orchestrate the weight to give to operating cycle and liquidity through presentation and disclosures.

Paragraph 3.3.4

Understand the IFRSs thresholds for current operating assets and liabilities and other current assets and current liabilities, as compared to U.S. GAAP; Consider the different definitions of operating cycle in IFRSs and U.S. GAAP; Understand the format of the statement of financial position that better convey a net working capital or a gross working capital analysis; Understand how a differing use of a contractual versus an expected date for ...