CFA一级财务报表GAAP与IFRS异同全面总结.docxVIP

CFA Level-IFinancial Reporting AnalysisFinQ CFA Level-I Financial Reporting Analysis FinQ PAGE PAGE 10 READING 31: FINANCIAL REPORTING STANDARDS FRAMEWORK U.S. GAAP Purpose of The FASB framework resides Framework lower in hierarchy. IFRS Management is explicitly required to prioritize the IASB Similarities Both the frameworks are similar in their purpose to assist in Management is not required to framework if there is no developing and assisting prioritize it if no standard is standard or interpretation standards. available. available. Objectives of financial statement Underlying assumptions It provides different objectives It gives one objective for for business entities versus non different business entities. business entities. Although it recognizes, but not Give importance to accrual given much prominence is and going concern basis given to accrual and going concern basis. In fact going concern assumption is not well developed in particular Both frameworks have a broad focus to provide relevant information to a wide range of users. Qualitative Same characteristics but with Characteristics a hierarchy Relevance and Reliability are primary qualities. Comparability is the secondary quality. Understandability, treated as user-specific It has the same characteristics (understandability, comparability, relevance and reliability) but there is no such hierarchy. The characteristics are same. Approach Performance elements Rules based approach in the Principles based approach past but moving towards adopting object oriented approach Financial statement elements (definition, recognition, and measurement) Elements are revenues, Revenues and Expenses expenses, gains, losses, and comprehensive income. Financial Position elements Recognition of elements Asset: a future economic benefit. Term ‘Probable’ is used to define assets and liabilities elements. Does not discuss “Probable” for recognition criteria. Has separate criteria based upon “Relevance” Asset: