US GAAP vs IFRS – a 2-day course

An introduction to the main differences that exist in US GAAP in comparison with IFRS

The course is designed for individuals who already have knowledge of IFRS and now need to develop their skills in US GAAP. It will focus on the major differences. It is not possible to draw up an exhaustive list of all the differences due to the changing regulatory framework and depending on clients’ questions as the course progresses. The course is conducted in English.

For whom?

The course is designed for those who already have knowledge of IFRS or US GAAP standards and now need to expand this knowledge in additional areas. The training focuses on the most important differences. Due to changes in the regulatory framework, an exhaustive list of all differences is impossible.

Objectives and benefits

To evaluate and apply the requirements of US GAAP, insofar as they differ from International Financial Reporting Standards (IFRS).

Programme

Part 1

Introduction to US GAAP

The US regulatory environment will be introduced bearing in mind the US legal system. There will be a discussion on how IFRS have impacted on financial reporting worldwide and how the US views IFRS.

Regulatory framework and fundamental concepts

US GAAP has evolved since the 1930s so there are many sources, unlike IFRS. There will be a discussion on the differences between the regulatory environments , the US GAAP codification end the issues that arise in relation to enforcement of IFRS.

Presentation of financial statements

With the issue of the revised IAS 1, the language is becoming more similar between US financial statements and their international equivalents. Nonetheless, there are still some language issues which need to be discussed to assist a reader of US GAAP financial statements.

Property plant and equipment

We will focus on the differences such as impairment, asset retirement obligations and other issues.

Intangible assets

US GAAP has the most developed guidance on software costs. There are also differences in relation to research and development costs.

Part 2

Revenue recognition

There is a myriad of guidance under US GAAP dealing with franchise fee revenue, sale or return transactions, the installment sales method, multiple-deliverable arrangements and the SEC have issued guidance.

Inventory valuation

The concept of lower of cost and market will be developed and the accounting requirements in relation to replacement cost.

Contingent losses and gains

The US standard focuses on the income statement while IAS 37 is balance sheet focused. The impact of this will be discussed.

Leasing

There are different criteria to IFRS for deciding if a lease is a capital lease and the sale and leaseback provisions also differ.

Construction contracts

The completed contract method is allowed under US GAAP under certain circumstances while under IFRS revenue is recorded at the same amount as costs incurred.

Summary of other differences between IFRS and US GAAP

Throughout the course, as issues arise they will be discussed. There will be a discussion of these “sweep” issues.

Trainers

Brian Connolly - Brian has been providing ACCA exam preparation training courses since 1996. He is also the author of many training programmes, including a 12-day programme on IFRS. Since 2001, he has been a trainer of courses on US GAAP.

CPD Points

CPD (Continuing Professional Development) – our training courses meet the requirements of international professional bodies (ACCA, IIA) for the continuing education of their members.