The Pros And Cons Of IFRS Video
What is IFRS? The Pros And Cons Of IFRSOne such difference is the accounting of intangible assets. Intangible assets, such as goodwill, research and development, and advertising costs are only recognized if the asset will have a future economic benefit and has measured reliability under IFRS while all are recognized at fair value under GAAP.
Walmart has goodwill listed at 31, in millions on its balance sheet; under IFRS, Walmart would have to show a future economic benefit in order to be stated as an asset on its financials. Other differences include inventory methods and reversals.
While this type of structure has its benefits and can be stated as an advantage, it can actually be a disadvantage as well. A significant disadvantage would be the the company would no longer be able to use the LIFO inventory method.
Pros and Cons of U.S.-GAAP and IFRS
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