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In the field of UK accounting, there are two financial reporting standards – US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS).
IFRS is the most commonly used system in the world, and this method of accounting for publicly traded companies is used by more than 100 countries. The coalescence between IFRS and US GAAP is one of the bigger issues in the global implementation of IFRS. At present, all US entities have to file accounts prepared under local US GAAP except for the overseas issuer of securities, they have the option of using IFRS from 2010.
FASB and IASB continue to work collaboratively in the adoption of new standards.
We have compiled a clear table of the basic differences between IFRS and US GAAP below.
| IFRS | US GAAP | |
| Comparative information | For the previous period the statement of financial position is required for all the amounts that were reported in the financial statements | The statement of financial position requires comparatives for the two most recent years |
| Value in use | Discounted cash flow | Undiscounted cash flow |
| Cash flow statements | In cash and cash equivalents the bank overdrafts are included | The bank overdrafts are treated as part of financing |
| Extraordinary items | They are prohibited for IFRS | They are not used anymore for US GAAP |
| Revaluation | Can be applied | Prohibited |
| Development costs | Capitalisation as assets | Costs in period when occurred |
| Component depreciation | Required if components have different patterns of benefit | Allowed but not common |
| Borrowing costs – interests | May include more components | The exchange rates are excluded |
At Accace Adept, we focus mainly on accounting according to International Financial Reporting Standards . However, it can be challenging to become familiar with this topic, so our IFRS experts are ready to give you any advice you may require.
Accounting and reporting services | Accounting online portal | Payroll and HR outsourcing | Payroll and HR online portal | Tax compliance and advisory | Go-to-market and corporate services | Company secretarial services
About Accace Adept UK
We are a joint venture between Accace and Adept Advisory, established to pursue a long-term strategy of providing innovative Business Process Outsourcing (BPO) and advisory services to clients in the United Kingdom and South Africa. We joined forces to augment each other’s valuable insight, knowhow and practices, whilst combining our experience in complementary fields of expertise.
About Accace Circle
Accace Adept operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 50 jurisdictions with nearly 2,500 professionals, we support more than 15,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 200,000 pay slips globally.
