Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
International Financial Reporting Standards (IFRS) and the General Accepted Accounting Principles (US GAAP) differ in terms of measurements of assets in several domains. According to IFRS standards, investment properties (IAS 40) are pieces of land or real estate held by an entity to earn capital from renting them out or as a result of an increase in value (Maisuradze & Vardiashvili, 2017). However, US GAAP does not hold a specific definition for such assets since they are usually included in property, plant, and equipment.
There are also differences between the fair value model (FVM) and the cost model. The fair value model is a more complex system that measures investment property separately during each reporting period. The fair value changes based on the financial gains or losses that the asset has brought. On the other hand, the cost model is based on the overall depreciation of a property up to one particular period.
Another aspect that differs between IFRS and US GAAP is the borrowing costs. An example is how both systems determine specific inventory that requires a long production time and higher rates in terms of quantity. IFRS uses qualifying assets to categorize such products. However, US GAAP’s standards have other definitions for such concepts. Unless the products are intended for personal use or are not produced in large quantities, they are not included in qualifying assets.
IFRS and US GAAP also have contrasting policies for intangible assets, specifically how they are qualified. Based on IFRS standards, intangible assets are the assets that are always beneficial in terms of future financial profit. If an asset does not have this quality, it will not be inserted into this category. Unlike IFRS, US GAAP considers intangible assets based on their fair market value in the present. No additional criteria are taken into consideration under US GAAP standards.
Reference
Maisuradze, M., & Vardiashvili, M. (2017). The issues of recognition and measurement of the investment property according to IAS 40. Journal of International Scientific Publications, 11, 416–423.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.