Income Statement Under Ifrs And Gaap

Example 3 ifrs based income statement.

Income statement under ifrs and gaap. Under both ifrs standards and us gaap with major new standards on revenue leases financial instruments and insurance. The content and presentation of the income statement under ifrs is similar to that under gaap but there are also some key differences. Under ifrs the income statement is labeled statement of profit or loss. Actuarial gains and losses do not flow to equity but are applied to assets or liabilities and are incorporated in the calculation of a net asset or.

Like us gaap the income statement captures most but not all revenues income and expenses. Gaap and ifrs are the two major financial reporting methods. Similarities both gaap and. Other items of comprehensive income oci do not flow through profit and loss.

Income statement states the financial health of the organization. No special format of the income statement needs to be followed under the ifrs but gaap prescribes a specific format to prepare one i e to use a single step or multiple step format. Gaap shows the items right under the net income while the ifrs does not allow item s segregation. Examples include the fair value remeasurement of certain equity instruments remeasurements of.

Gaap under a single step format the classification of all expenses is done by functions and then those functions are deducted from the total income in order. Actuarial gains and losses are recognized as part of other comprehensive income during the period of gain or loss on the company s statement of changes in shareholder s equity. 3 13 income taxes 209 4 specific items of profit or loss and oci 229. Ifrs has no particular format while preparing an income statement whereas us gaap represents the income statements in two ways i e.

Both gaap and ifrs require an income statement for reporting. Following is the breakdown of the similarities and differences between gaap and ifrs relating to the income statement.