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International Standards Convergence

Convergence of IFRS & US GAAP is ongoing process, but material differences in their accounting standards are listed below:
  • LIFO method is allowed under US GAAP but not allowed under IFRS
  • IFRS allows upward revaluation of PP&E, but US GAAP does not allow upward revision
  • US GAAP recommends equity method of accounting for joint ventures, whereas IFRS uses proportionate consolidation
  • US GAAP doesn't permit upward revaluation of intangible assets like goodwill
  • US GAAP allows capitalization of construction interest, IFRS allows capitalization of acquisition, construction interest
  • US GAAP – interest received & paid – CFO
  • IFRS flexible in terms of classification     

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