Page 29 - FINAL CFA SLIDES DECEMBER 2018 DAY 7
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Session Unit 6:
23. Financial Reporting Standards
LOS 23.f: Compare key concepts of financial reporting standards under IFRS and US
generally accepted accounting principles (US GAAP) reporting systems, p.31
• The IASB framework lists income and expenses as elements related to performance,
while the FASB framework includes revenues, expenses, gains, losses, and
comprehensive income.
• The FASB defines an asset as a future economic benefit, whereas the IASB defines it as
a resource from which a future economic benefit is expected to flow. Also, the FASB
uses the word probable in its definition of assets and liabilities.
• The FASB does not allow the upward valuation of most assets.
In many cases, however, a company will present a reconciliation statement showing
what its financial results would have been under an alternative reporting system.
