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

4.1 CHAPTER PREVIEW

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

This chapter first counterpoises the statement of comprehensive income to the income statement, including theoretical and historical background, and analyzes statement variants often found in authorative pronouncements and in accounting practice. In comparing the structures of the income statement according to those sets of standards, it goes through the different aggregations and subtotals to discuss their rationales, current practices, and specific issues. For each topic, it also explains current development under the Financial Statement Presentation Project. It continues with the illustration of the differences between an income statement that analyzes expenses by function and one that follows a classification by nature. Finally, it includes Exhibits that provide a listing of line items that an entity must display on the face of the statements of income under IFRSs, U.S. GAAP, and SEC rules and regulations. Other Exhibits illustrate items that an entity may either present in the statements of income or disclose in the notes to the financial statements. A clear picture emerges concerning items whose display is mandatory, those for which note disclosure as opposed to display is an option, and those ...