Discuss the differences in classifications of cash flows between IFRS and U.S. GAAP.

Deliverable Length: 1,000–1,200 words

Description:

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

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:

1. Best estimates
2. Risks
3. Uncertainties