The Deloitte International Financial Reporting Standards (IFRS) Global Office has published a new Comparison of the IFRS and the United States Generally Accepted Accounting Principles (US GAAP).
For attorneys working on financial matters, they may be interested to read the report to find out that for balance sheet classifications of share-based payment arrangements, IFRS focuses on whether the award can be cash-settled. US GAAP has requirements that may result in more share-based arrangements being classified as liabilities.
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The report explains that under US GAAP, an accounting choice exists for share-based payment awards with a service condition to either: amortize the entire grant on a straight-line basis over the longest vesting period, or recognize the book expense on an accelerated basis to reflect the vesting as it occurs. This is compared to IFRS, where the book expense must be recognized on an accelerated basis to reflect the vesting as it occurs.
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