Question: International Accounting Standard 18 (IAS 18) provides the general standards for revenue recognition and measurement in the IFRS.
• Provide 3 examples of the differences between the 2 sets of standards. Review the IAS 7 statement of cash flows, and complete the following:
• Discuss the differences in classifications of cash flows between IFRS and U.S. GAAP.
• What impacts will these have on U.S. companies?
• Cover the differences with the classifications of contingent liabilities between U.S. GAAP and IFRS. Be sure to cover the topics of possible, probable, and bright-line tests.
• When looking at cash and cash equivalents definitions between IFRS and U.S. GAAP, discuss the differences for the following:
- Best estimates
- Risks
- Uncertainties