presentation of financial statements as per us gaap

• All Self-Study Programs
• Premium Package
• Basic Package
• Private Equity Masterclass
• VC Term Sheets & Cap Tables
• Sell-Side Equity Research (ERC © )
• Buy-Side Financial Modeling
• Real Estate Financial Modeling
• REIT Modeling
• FP&A Modeling (CFPAM ™ )
• Project Finance Modeling
• Bank & FIG Modeling
• Oil & Gas Modeling
• Biotech Sum of the Parts Valuation
• The Impact of Tax Reform on Financial Modeling
• Corporate Restructuring
• The 13-Week Cash Flow Model
• Accounting Crash Course
• Advanced Accounting
• Crash Course in Bonds
• Analyzing Financial Reports
• Interpreting Non-GAAP Reports
• Fixed Income Markets (FIMC © )
• Equities Markets Certification (EMC © )
• ESG Investing
• Excel Crash Course
• PowerPoint Crash Course
• Ultimate Excel VBA Course
• Investment Banking "Soft Skills"
• Networking & Behavioral Interview
• 1000 Investment Banking Interview Questions
• Virtual Boot Camps
• 1:1 Coaching
• Corporate Training
• University Training
• Free Content
• Support/Contact Us
• About Wall Street Prep

US GAAP vs. IFRS

Step-by-Step Guide to Understanding US GAAP vs IFRS Accounting (+ Cheat Sheet)

Learn Online Now

US GAAP vs. IFRS: What is the Difference?

US GAAP and IFRS are the two predominant accounting standards used by public companies, but there are differences in financial reporting guidelines to be aware of.

In order to present a fair depiction of the business conducted, publicly-traded companies are required to follow specific accounting guidelines when reporting their performance in financial filings.

For publicly-traded companies in the US, these rules are created and overseen by the Financial Accounting Standards Board (FASB) and referred to as US Generally Accepted Accounting Principles (US GAAP).

On the other hand, the International Accounting Standards Board (IASB) created and oversees the International Financial Reporting Standards (IFRS) , which is followed by more than 144 countries.

Table of Contents

US GAAP vs. IFRS: Convergence

Us gaap vs. ifrs: cheat sheet, global accounting trends, what are the differences between us gaap and ifrs, 1. financial statement presentation, 2. recognition of accounting elements, 3. measurement of accounting elements, 4. disclosures and terminology, what are the similarities between us gaap and ifrs.

Although we have seen moderate convergence of US GAAP and IFRS in the past, the likelihood of a single set of international standards being adopted in the near term remains very low.

Global Reporting Data ( Source )

We have compiled a single cheat sheet to outline the key differences between US GAAP and IFRS.  You can download the complete US GAAP vs IFRS Cheat Sheet below.

By submitting this form, you consent to receive email from Wall Street Prep and agree to our terms of use and privacy policy.

Given the statistics above, it is clear why it is important to understand the differences between US GAAP and IFRS. More specifically, there are two developing trends to be aware of:

• Geographic Diversification : Investment firms have been broadening the geographic scope of their investments to consider opportunities overseas – moreover, 500+ foreign SEC registrants use IFRS standards. Increasingly, institutional investors are more open to making investments in the emerging markets not only because there are more opportunities, but to further re-risk their portfolio.
• Cross-Border M&A Activity : Next, cross-border mergers and acquisitions (M&A) have emerged as a method for companies to enter new markets, and global trends suggest increased deal volume is on the horizon. For an international M&A deal, the investment banker tasked with building the M&A Model would be required to compare the financial reporting of both US and non-US companies.

Blue Areas Represent Areas where IFRS is Required for Domestic Public Companies (Source: IFRS )

Generally, IFRS is described as more principles-based whereas US GAAP is described as more rules-based . While there are examples to support these descriptions, there are also meaningful exceptions that make this distinction not very helpful.

The following discussion highlights specific differences between the two sets of standards that may be useful to users of financial statements.

There are four main areas where the two diverge in financial reporting:

• Financial Statement Presentation
• Recognition of Accounting Elements
• Measurement of Accounting Elements
• Disclosures and Terminology

The following differences outlined in this section affect what financial information is presented, how it is presented, and where it is presented.

Income Statement

US GAAP requires presenting three periods, compared to two for IFRS. However, many companies following IFRS choose to report three periods.

Balance Sheet

US GAAP lists assets in decreasing order of liquidity (i.e. current assets before non-current assets), whereas IFRS reports assets in increasing order of liquidity (i.e. non-current assets before current assets).

Volkswagen Group (IFRS) vs. Ford Motor Co. (US GAAP) Balance Sheet Comparison

Statement of Cash Flows (CFS)

US GAAP requires that interest expense, interest income and dividend income be accounted for in the operating activities section, and dividends paid be reported in the financing section.

However, IFRS provides greater discretion with respect to which section of the Statement of Cash Flows these items can be reported in.

Quarterly/Interim Reports

US GAAP considers each quarterly report as an integral part of the fiscal year, and a Management’s Discussion and Analysis section (MD&A) is required.

In contrast, IFRS considers each interim report as a standalone period, and while an MD&A is allowed, it is not required.

Non-Standardized Metrics

Both US GAAP and IFRS allow different types of non-standardized metrics (e.g. non-GAAP or non-IFRS measures of earnings), but only US GAAP prohibits the use of these directly on the face of the financial statements.

Non-GAAP Metric Example

Under GAAP, companies are allowed to supplement their earning report with non-GAAP measures.

The most commonly used example is earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure that includes adjustments for non-cash items such as depreciation and non-recurring, one-time expenses to more accurately represent the “true” performance of the business.

However, adjusted EBITDA will be included in a separate reconciliation section rather than directly showing up on the actual income statement.

Whether a company reports under US GAAP vs IFRS can also affect whether or not an item is recognized as an asset , liability , revenue , or expense, as well as how certain items are classified.

Research and Development (R&D) Costs

US GAAP requires that all R&D is expensed, with specific exceptions for capitalized software costs and motion picture development. While IFRS also expenses research costs, IFRS allows the capitalization of development costs as long as certain criteria are met.

Capitalizing Development Costs under IFRS (Airbus, 2019)

Expensing R&D under US GAAP (Boeing, 2019)

Capitalizing Development Costs under US GAAP (Netflix, 2019)

Contingent Liabilities

Referred to as ‘Provisions’ under IFRS, contingent liabilities refer to liabilities for which the likelihood and amount of the settlement are contingent upon a future and unresolved event.

Examples include a liability associated with a pending lawsuit or a liability associated with the company’s future cost of fixing a product under warranty.

When comparing US GAAP and IFRS, differences in the definition of the word “probable” and the measurement techniques used can lead to differences in both the recognition and amount of Contingent Liabilities. IFRS has a lower threshold for recognition as its definition of probable is > 50%, while US GAAP generally considers a contingent liability probable only when the likelihood is >75%.

US GAAP and IFRS also differ with respect to the amount of the liability that is recognized.

IFRS generally uses the expected value in its measurement of the amount of the liability recognized, while the amount under US GAAP depends on the distribution of potential outcomes.

As such, the same scenario can lead to differences in the recognition, measurement and even disclosure of contingent liabilities if the company was reporting under US GAAP or IFRS.

Income Taxes

Under US GAAP, all deferred tax assets (DTAs) are recognized and netted out/offset with a valuation allowance when it is more likely than not (>50%) that the company will not be able to use the DTA.

But for IFRS, DTAs are only recognized as assets when probable (>50%), so there is no need for valuation allowances.

Investment Property

For US GAAP, all property is included in the general category of Property, Plant and Equipment (PP&E). Under IFRS, when the property is held for rental income or capital appreciation the property is separated from PP&E as Investment Property.

Biological Assets

Under US GAAP, harvestable plants are included in inventory while production animals are included in PP&E. On the other hand, living animals and plants that can be transformed or harvested are considered biological assets and are measured at their fair value until they can be harvested under IFRS.

Reporting differences with respect to the process and amount by which we value an item on the financial statements also applies to inventory, fixed assets and intangible assets .

Under US GAAP, both Last-In-First-Out ( LIFO ) and First-In-First-Out ( FIFO ) cost methods are allowed. However, LIFO is not permitted under IFRS because LIFO generally does not represent the physical flow of goods.

The table below shows the impact of this difference on other metrics and should be useful when using these metrics across US GAAP and IFRS:

Fixed Assets

Both accounting standards recognize fixed assets when purchased, but their valuation can differ over time.

US GAAP requires that fixed assets are measured at their initial cost; their value can decrease via depreciation or impairments, but it cannot increase.

IFRS allows companies to elect fair value treatment of fixed assets, meaning their reported value can increase or decrease as their fair value changes.

In addition, IFRS requires separate depreciation processes for separable components of PP&E. US GAAP allows but does not require such cost segregations.

Intangible Assets

Similar to fixed assets, under US GAAP, intangible assets must be reported at cost. Under IFRS, companies can elect fair value treatment, meaning asset values can increase or decrease depending on changes in their fair value.

To conclude our section on how US GAAP and IFRS differ, another area of variance is the information required to be disclosed within the footnotes of the financial statements, as well as the terminology frequently found in filings.

Disclosures

US GAAP and IFRS can differ in the specifics and level of detail required. Footnotes are essential sources of additional company-specific information on the choices and estimates companies make and when discretion is exerted, and thus useful to all users of financial statements.

Revenue Recognition Disclosure Example

A classic example of revenue recognition manipulation that we discussed in our Accounting Crash Course was software-maker Transaction Systems Architects (TSAI).

Up until 1998, TSAI had employed conservative revenue recognition practices and only recorded revenues from agreements when the customers were billed through the course of the 5-year agreement. But once sales began to decline, TSAI changed its revenue recognition practices to record approximately 5 years’ worth of revenues upfront.

This was eventually exposed in 2020, in which TSAI’s revenue from software license fees saw an immediate 16.1% fall post-adoption of SOP 97-2.

Below is the disclosure in TSAI’s 2020 10-K that explained its sudden decrease in software revenue.

Later in 2002, KPMG replaced Arthur Andersen as TSAI’s auditor and upon restating its financials – TSAI’s 1999 to 2001 cumulative revenue was reduced by $145mm due to the improper recognition of revenue related to its software licensing arrangements.

US GAAP vs. IFRS Terminology

US GAAP and IFRS show differences in terminology as noted in the following examples:

Despite the many differences, there are meaningful similarities as evidenced in recent accounting rule changes by both US GAAP and IFRS.

Revenue Recognition (ASC 606 and IFRS 15)

The Revenue Recognition Standard, effective 2018, was a joint project between the FASB and IASB with near-complete convergence. It provided a broad conceptual framework using a five-step process for considering contracts with customers and recognizing revenue.

The updated standard helped ensure that the accounting guidelines would better match the underlying economics of new business models and products.

Automotive Industry Business Model Example

The traditional business model in the automotive industry has gradually begun to shift from one-time purchases to continuous post-sale revenue.

This movement to get existing customers to pay more to unlock embedded features has been led by automaker Tesla, whose vehicles come with different tiers of connectivity and features based on the paid subscription service plan (e.g. Standard Connectivity, Premium Connectivity, Acceleration Boost).

In effect, this facilitates the standardization and comparability of revenue recognition across different businesses and industries.

Leases (ASC 842 and IFRS 16)

The Lease Standards, effective 2019, requires that leases greater than 12 months are reported on Balance Sheets as Right of Use Assets under both US GAAP and IFRS. US GAAP distinguishes between Operating and Finance Leases (both are recognized on the Balance Sheet), while IFRS does not.

The important difference from this change, that companies with leases may see a material increase in non-current assets and the corresponding debt obligations on their balance sheets, is relevant for both US GAAP and IFRS.

Leases under US GAAP (Kroger, 2019) vs. Leases under IFRS (Tesco, 2019)

Debt Issuance Costs (ASU 2015-03)

Under US GAAP prior to 2015, debt issuance costs were capitalized as an asset on the Balance Sheet.

In 2015, US GAAP effectively matched IFRS’s treatment of netting these costs against the amount of outstanding debt, similar to debt discounts. This leads to the debt being recognized on the Balance Sheet as a liability (the net amount outstanding) not both an asset (the capitalized issuance cost) and a liability (the outstanding principal). For more information, see US GAAP’s Accounting Standard Update in 2015 .

For a deeper dive into the distinctions between US GAAP and IFRS, please see our Financial Reporting Differences in a Global Economy Course .

Everything You Need To Master Financial Modeling

Enroll in The Premium Package: Learn Financial Statement Modeling, DCF, M&A, LBO and Comps . The same training program used at top investment banks.

• Income Statement Forecasting Guide
• Balance Sheet Forecasting Guide
• 3-Statement Model

It is incorrect that US GAAP requires 3 years on the income statement. That is a public company requirement — not a US GAAP requirement.

Thank you for the clarification!

We're sending the requested files to your email now. If you don't receive the email, be sure to check your spam folder before requesting the files again.

Our popular accounting course is designed for those with no accounting background or those seeking a refresher.

The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.

GAAP Financial Statements – Requirements, Benefits And More

Generally Accepted Accounting Principles or GAAP are basically the set of ten accounting standards set by the United States Financial Accounting Standards Board (FASB). First established by FASB in 1973, the GAAP principles are now accepted by the Securities Exchange Commission (SEC) and the American Institute of Certified Public Accountants as the official standards for financial accounting. This article will talk about GAAP financial statements, which every company following GAAP should prepare.

• Reporting Requirements Under GAAP

As per the GAAP, organizations should provide reports on their cash flows, profit-making operations, and overall financial conditions. To report these things, the most important GAAP financial statements are – Balance Sheet, Income Statement, Shareholder’s Equity, and Cash Flow Statement.

Balance Sheet

• Statement of Owner’s Equity

Income Statement

Cash flow statement, guidelines for gaap financial statements, benefits of using gaap financial statements.

The balance sheet talks about the assets and liabilities of the company, while the Shareholder’s Equity detail the available equity in the company. The income statement details the revenue earned by the company and the corresponding expenses. As the name suggests, the Cash Flow statement is simply the cash record of the company. Cash flow becomes important because both the income statement and balance sheet reveal the financial health of the company on an accrual basis and, therefore, do not talk about the real financial position.

Let’s understand each of the GAAP financial statements in detail.

GAAP Financial Statements

The balance sheet primarily consists of Assets and Liabilities. Assets include both current and non-current assets, and so are the liabilities. All the assets that a company can easily convert into cash are known as current assets. On the other hand, the assets that can’t be converted into cash easily are non-current assets. Current Assets include items such as cash, account receivables, inventory, prepaid expenses, and so on. Non-current assets (or mainly fixed assets) include land and building, equipment, prepaid insurance, etc.

Also Read: Types of Cash Flow

On the other hand, Liabilities are the portion of the firm’s assets that a company owes to the creditors. Depending on the duration, one can categorize liabilities into both long and short term. Some examples of current liabilities are accounts payable, taxes payable, wages payable, etc. The long-term liabilities are bonds, payable mortgages payable, and more.

Statement of Owner’s Equity

This statement shows the changes in the equity (in the balance sheet) during an accounting period. Or, we can say it reports the events that lead to an increase or decrease in the owner’s equity over a given period. Stockholders’ Equity statement in a corporation consists of:

Common Stock (recorded at par value)

Add: Preferred Stock (recorded at par value)

Add: Premium on Common Stock (issue price – par value)

And also, Add: Premium on Preferred Stock (issue price – par value)

Add: Retained Earnings

The ending result is Stockholder’s Equity

The income statement is the representation of the company’s operation during the period of time. A simple equation to describe the Net Income would be Revenue Less Expenses. Here revenue represents the funds received from the sale of the end product or the service offered to the customers.

The underlying premise of the accrual basis of accounting is that the company might be earning a profit but may be short of cash. Cash is essential to keep the business running and meet the day-to-day expenses of the company. Therefore, understanding the sources of cash in a company becomes very crucial. For a given period, the cash flow statement should include the following information:

Also Read: Cash Flows from Financing Activities

• Source of Cash
• Uses of Cash
• Change in Cash Balance

Further, the cash flow statement does not only include cash transactions from operations but from other activities as well. For instance, businesses make investments, buy assets, sell assets, raise cash, etc. All these activities can be categorized into three heads;

• Operating activities
• Investing activities
• Financing activities

All financial statements under GAAP are affected by three basic assumptions. These are the monetary unit for financial reporting, “going concern” assumption, and reporting period options.

All the financial statements must display data in a common currency, such as the US dollar. If, for any reason, a transaction does not have a monetary unit, an accountant must not include it in the financial statements.

The reporting period for a business could be from a few months to one year. Also, businesses can choose to report the financial statements either quarterly or semi-annually, or both. For a given reporting period, the financial statement should include a heading describing the time period, such as “the three months ended September 30, 2013.”

The going concern assumption implies that the business is not in the process or considering liquidation. This assumption makes it possible for the business to defer certain expenses to a future date.

Read Types of Financial Statements in detail to learn more.

GAAP helps create consistency because all financial statements follow the same set of principles. Businesses that follow and maintain their financial statements as per GAAP have the upper hand as they offer the best information to run a business.

Also, since all the organizations, financial institutions, banks, and authorities accept GAAP principles, it becomes easier for the companies to apply for loans and other financial aid. Banks and other financial institutions trust companies that maintain their financial statements as per the GAAP rules.

All stakeholders know that the GAAP financial statements are based on facts and not speculation. Be it a loan provider, investor, promoter, or anyone else, they trust the financial statements made as per GAAP and base their decisions on the same.

Moreover, it is important for companies to have ethical standards and follow them religiously. GAAP financial statements are such that they help the organizations in following the ethical standards and establish trust among all the parties.

RELATED POSTS

• Cash Flow Statement – Definition and Meaning
• Cash Flow from Investing Activities – Items Included, Formula, and Example
• All 10 GAAP Principles – Meaning, Importance And More
• GAAP vs Non-GAAP – All You Need To Know
• Cash Flow Vs. Fund flow
• Importance of GAAP

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Sign me up for the newsletter!

Find latest publication on US GAAP,IFRS and Canadian ASPE

PwC US GAAP Financial Statement Presentation Guide

• March 6, 2022
• PwC US GAAP Publications

Leave a Reply Cancel Reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Trending now

Profile Management

Global Locations

RECENT SEARCHES

RECOMMENDED

• SURVEY REPORT Energy Survey
• INSIGHTS Industry Intersections

U.S. GAAP and IFRS comparison guide

Grant Thornton’s Comparison between U.S. GAAP and IFRS ® Standards is designed to help financial statement preparers grasp some of the major similarities and differences between IFRS and U.S. GAAP. This publication places a greater emphasis on the recognition, measurement, and presentation guidance provided by the FASB and IASB, and less emphasis on the disclosure requirements. It covers only those differences in guidance that we believe practitioners generally encounter in practice.

This update of the comparison guide includes standards issued as of December 31, 2023 that are effective as of that date. For U.S. GAAP, this guide has used the effective date for standards for public business entities that are SEC filers. This publication does not include accounting alternatives for private companies.

Download  our comparison guide in an reader-friendly tabular format.

Download the asset

Share with your network

Susan Mercier

Partner Accounting Principles Group

Metro DC - Arlington, Virginia

Kristian Rowden

Director Accounting Principles Group

This Grant Thornton LLP content provides information and comments on current issues and developments. It is not a comprehensive analysis of the subject matter covered. It is not, and should not, be construed as accounting, legal, tax, or professional advice provided by Grant Thornton LLP. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.

The content in this publication is based on information available as of December 31, 2023. We may update this publication for evolving views as we continue to monitor developments. For the latest version, please visit grantthornton.com.

Portions of FASB Accounting Standards Codification® material included in this work are copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, and are reproduced with permission.

For additional information on topics covered in this content, contact a Grant Thornton LLP professional.

“Grant Thornton” refers to the brand name under which the Grant Thornton member firms provide services to their clients and/or refers to one or more member firms, as the context requires.

Grant Thornton LLP and Grant Thornton Advisors LLC (and their respective subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Grant Thornton LLP is a licensed independent CPA firm that provides attest services to its clients, and Grant Thornton Advisors LLC and its subsidiary entities provide tax and business consulting services to their clients.

Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms. Grant Thornton International Limited (GTIL) and the member firms, including Grant Thornton LLP and Grant Thornton Advisors LLC, are not a worldwide partnership. GTIL and each member firm are separate legal entities. Services are delivered by the member firms; GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

© 2024 Grant Thornton Advisors LLC | All rights reserved | U.S. member firm of Grant Thornton International Ltd.

Our audit insights

No Results Found. Please search again using different keywords and/or filters.

Financial Reporting and Analysis Software

• Our products:
• Financial Analysis
• Reporting Tool
• US Industry Benchmarking
• Russian Entites Profiles

US GAAP Financial Reports: All Assets, Liabilities and Equity (official 2013-2024 taxonomy)

Balance sheet (statement of financial position).

Income Statement (P&L)

Comprehensive Income

US GAAP Financial Statements Source

These US GAAP reporting templates are based on the official 2013-2019 Financial Reporting Taxonomy. The cross mark (✕) indicates that the concept was not present in the taxonomy version for the corresponding year.

Top U.S. Companies' Financials

• Terms of Use
• Privacy Policy

Login to Ready Ratios

If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios:

Have you forgotten your password?

Are you a new user ?

• Search Search Please fill out this field.
• Corporate Finance

What Kind of Financial Reporting Requirements Does GAAP Set Out?

Per generally accepted accounting principles (GAAP), companies are responsible for providing reports on their cash flows, profit-making operations, and overall financial conditions. The following three major financial statements are required under GAAP:

• The income statement
• The balance sheet
• The cash flow statement.

The income statement recaps the revenue earned by a company during the reporting period, along with any corresponding expenses. This includes revenue from operating and non-operating activities, allowing auditors, market analysts, investors, lenders, regulators, and any other stakeholders, to evaluate the company's financial cycle and results. It is sometimes referred to as the profit and loss (P&L) statement.

Key Takeaways

• Per generally accepted accounting principles (GAAP), companies are responsible for providing reports on their cash flows, profit-making operations, and overall financial conditions.  
• The following three major financial statements are required under GAAP: the income statement, the balance sheet, and the cash flow statement.  
• A company's balance sheet summarizes assets and sets them equal to liabilities and shareholder's equity. These three categories highlight what a company owns and how it finances its operations.

Balance Sheet and Cash Flow

A company's balance sheet summarizes assets and sets them equal to liabilities and shareholder's equity . These three categories highlight what a company owns and how it finances its operations. The balance sheet is an open snapshot of a company's assets and liabilities at a specific point in time.

GAAP also requires a cash flow statement, which acts as a record of cash as it enters and leaves the company. The cash flow statement is crucial because the income statement and balance sheet are constructed using the accrual basis of accounting, which largely ignores real cash flow. Investors and lenders can see how effectively a company maintains liquidity, makes investments, and collects its receivables.

The Securities and Exchange Commission

In the United States, publicly traded companies are regulated by the Securities and Exchange Commission (SEC). Since its inception, the SEC has delegated its accounting and financial reporting standards responsibilities to private-sector groups . The Financial Accounting Standards Board (FASB) is responsible for generating rulings under GAAP, and the SEC enforces those standards on the financial community.  

Origins of GAAP

GAAP was ultimately created in response to the Stock Market Crash of 1929 and the subsequent Great Depression. Many economists believe that these historical events were at least partially the result of questionable reporting practices by some publicly-traded companies.

After the federal government started consulting with accounting groups to develop standards and practices for accurate and consistent financial reporting mechanisms GAAP began emerging with legislative measures like the Securities Act of 1933 and the Securities Exchange Act of 1934.

Financial Accounting Standards Board. “ About GAAP .”

U.S. Securities and Exchange Commission. “ What We Do .”

The CPA Journal. “ The Evolution of U.S. GAAP: The Political Forces Behind Professional Standards .”

• Terms of Service
• Editorial Policy
• Privacy Policy

2023 U.S. GAAP Financial Statements - Best Practices in Presentation and Disclosure

Updated for new accounting and auditing guidance issued, this valuable tool provides hundreds of high quality disclosure examples from 350 carefully selected U.S. companies of various sizes, across over 100 different industries.

Availability

Product Number

Publication Date

To purchase the subscription version, go here .

Save time and improve efficiency!

Whether you're a preparer or auditor, you'll save time and improve efficiency with this valuable resource that will give you an unparalleled picture of U.S. GAAP compliance.

You'll be able to review hundreds of carefully selected high-quality disclosure examples from U.S. companies of various sizes across over 100 different industries. You'll get illustrations of virtually every required disclosure, coverage of current hot topics, and clear guidance to help you understand and comply with all significant reporting requirements.

Detailed appendixes list the 350 survey companies used to select disclosure excerpts, as well as their industry classifications. For auditors, an up-to-date auditor's report—fully in compliance with GAAS—is included.

Who Will Benefit

• Practitioners in firms of all sizes
• Accountants in business and industry
• Information included for both public and private companies

Group ordering for your team

2 to 5 registrants

Save time with our group order form. We’ll send a consolidated invoice to keep your learning expenses organized.

6+ registrants

We can help with group discounts. Email [email protected] US customers call  1-800-634-6780 (option 1 )

Ratings and reviews

Related content.

This site is brought to you by the Association of International Certified Professional Accountants, the global voice of the accounting and finance profession, founded by the American Institute of CPAs and The Chartered Institute of Management Accountants.

CA Do Not Sell or Share My Personal Information

Grand Freedom Sale Flat 10% OFF , Use Code: FREEDOM10

30-days Money-Back Guarantee

Income Statement (US GAAP)

This course provides a overview of US GAAP evolution, key definitions, SEC Guidance and Implementing the Codification.

Lectures - 8

Duration - 57 mins

Training 5 or more people ?

Get your team access to 10000+ top Tutorials Point courses anytime, anywhere.

Course Description

Generally Accepted Accounting Principles, also called GAAP or US GAAP, are the generally accepted accounting principles adopted by the U.S. Securities and Exchange Commission (SEC). They are used by most US public and private corporations and also by their international affiliates.

This provides a detailed overview of US GAAP evolution, key definitions, FASB codification, SEC Guidance and Implementing the Codification. All the concepts are explained extensively by the use of various case studies for the purpose of deep and insightful understanding. Through this training we are focusing on ASC 225 wherein we shall learn the specifics of Income Statement and various irregular occurring items and various changes introduced with examples.

Target Customers:

• Professionals (majorly Accountants, Auditors, Accounting Consultants, and Chartered Financial Analysts etc.) who want to excel in global organizations by learning about global standards that ply in their working.
• Anyone who wants to learn about accounting standards and improve the knowledge about the working of organizations on a global level.
• Anyone wanting to learn about US GAAP

The training includes the following:

• Introduction
• Income Statement
• Unusual or infrequently occurring items
• Changes introduced

This provides a detailed overview of US GAAP evolution, key definitions, FASB codification, SEC Guidance and Implementing the Codification.

All the concepts are explained extensively by the use of various case studies for the purpose of deep and insightful understanding. 

Through this training we are focusing on ASC 225 wherein we shall learn the specifics of Income Statement and various irregular occurring items and various changes introduced with examples.

Prerequisites

• Passion to learn
• Interest in finance and accounting
• Basic knowledge of accounting terms and concepts

Check out the detailed breakdown of what’s inside the course

Instructor Details

Corporate Bridge Consultancy Private Limited

Course Certificate

Use your certificate to make a career change or to advance in your current career.

Our students work with the Best

Related Video Courses

Annual membership.

Become a valued member of Tutorials Point and enjoy unlimited access to our vast library of top-rated Video Courses

Online Certifications

Master prominent technologies at full length and become a valued certified professional.

1800-202-0515

Senior Accountant, Property

Sr. Accountant, Property - This job is located at our Irvine office.

Oakmont Management Group (OMG) is looking for a full-time Sr. Accountant, Property for a busy and growing company. Oakmont is proud to offer luxury amenities and services to both active seniors and those in need of quality assisted living and memory care services. Oakmont currently operates 96 communities throughout California and Nevada, with more communities in the new development pipeline.

We�re seeking an experienced accountant to join our team in the role of Sr. Accountant, Property . The ideal candidate will have proven industry experience as an accountant, preferably in a senior role. As a strong communicator and skilled financial analyst, you will make it your mission to streamline our accounting, payroll, and financial reporting processes. You will produce thorough financial statements for senior management and capital partners to help improve our operational efficiency and aid in our continued growth.

Objectives of this Role

• Responsible monthly closing of general ledgers including preparation, review and posting of journal entries, general ledger account reconciliations and analysis
• Produce and publish monthly, quarterly and annual consolidated financial statements and related management reports
• Assist in the coordinate of annual financial statement audits
• Support and contribute to special projects of the CFO, Controller, and Assistant Controller primarily in the areas of reporting, planning, growth and development.

Daily and Monthly Responsibilities

• Prepare journal entries, reconcile bank accounts, and maintain lead sheets for all balance sheet accounts for various communities.
• Assist in the production of the financial statements for various communities and meet deadlines as required by various ownership groups.
• Analyze P&L accounts and investigate variances with communities.
• Assist in the review of financial statements of Staff Accountants as needed.
• Prepare training material and oversee the accuracy of the various activity for new and old operating communities that go through a real estate transaction.
• Assist in Accounts payable payment cycle and ensure timely payments to vendors.

Skills and Qualifications

• Bachelor�s or higher degree in Accounting or Finance;
• CPA preferred
• Strong excel skills and technically inclined mindset for process improvements;
• Preferred minimum of 2-3 years experience in public environment;
• Strong knowledge of US GAAP;
• Excellent written, verbal, communication, interpersonal and presentation skills;
• Ability to work independently with minimal supervision;
• RealPage accounting system experience preferred;
• Minimum of 2 years of Real Estate industry accounting experience preferred;
• Flexible and enthusiastic.

Base pay range: $70k-$115k

Actual placement within this range may vary based upon, but not limited to, relevant experience, time in role, base salary of internal peers, prior performance, business sector, and geographic location. The Company also offers competitive benefits for full time employees including paid time off, matching 401(k) and health benefits.

With communities across California, Hawaii, and Nevada, opportunities for career growth, relocation, and travel are significant. In addition, eligible team members may enjoy the following benefits:

• Medical, Dental, and Vision benefits
• Vacation, Personal Day, Sick Pay, Holidays
• Complimentary Meals
• Bonus Opportunities
• Company Paid Life Insurance
• Team Member Discount Program (LifeMart)
• 401(k) Savings Plan with Company Match
• Recognition Programs
• Student Loan Refinancing
• Tuition Reimbursement
• Pet Insurance
• Employee Assistance Program
• Emergency Financial Assistance

Oakmont Management Group, based in Irvine, California, is a recognized leader in the senior living industry that manages a portfolio of communities under the Oakmont Senior Living and Ivy Living brands. OMG currently serves over 6,000 seniors across 64 communities in California, Hawaii, and Nevada. At OMG, we strive to create an atmosphere of family and community among team members, residents, and resident family members. We know that caring and meaningful relationships are the foundation of a rewarding life, and our team is hand-selected for their skills, previous experience, and passion for working with the elderly. Our practice is to incorporate joy and laughter alongside our expectations of excellence. Walk into our communities and feel our pride of ownership and commitment to service.

Oakmont Management Group is an Equal Opportunity Employer.

• Locations Find
• International

News Releases

[Find out the latest news and information from Bank of Montreal Financial Group.]

[Signup for news alerts]

[Media Contacts]

Your search returned 100 results

BMO's Third Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended July 31, 2024 are available online at www.bmo.com/investorrelations  and at www.sedarplus.ca .

Financial Results Highlights

Third Quarter 2024 compared with Third Quarter 2023:

• Net income of $1,865 million , compared with $1,565 million ; adjusted net income 1, 2 of $1,981 million , compared with $2,148 million
• Reported earnings per share (EPS) 3 of $2.48 , compared with $2.12 ; adjusted EPS 1, 2, 3 of $2.64 , compared with $2.94
• Provision for credit losses (PCL) of $906 million , compared with $492 million
• Return on equity (ROE) of 10.0%, compared with 9.0%; adjusted ROE 1, 2 of 10.6%, compared with 12.5%
• Common Equity Tier 1 (CET1) Ratio 4 of 13.0%, compared with 12.3%

Year-to-Date 2024 compared with Year-to-Date 2023:

• Net income of $5,023 million , compared with $2,727 million ; adjusted net income 1, 2 of $5,907 million , compared with $6,492 million
• Reported EPS 3 of $6.57 , compared with $3.56 ; adjusted EPS 1, 2, 3 of $7.78 , compared with $8.88
• PCL of $2,238 million , compared with $1,732 million on a reported basis and $1,027 million on an adjusted basis 1
• ROE of 9.0%, compared with 5.1%; adjusted ROE 1, 2 of 10.7%, compared with 12.7%

Adjusted 1, 2 results in the current quarter and the prior year excluded the following items:

• Acquisition and integration costs of $19 million ( $25 million pre-tax) in the current quarter; $370 million ( $497 million pre-tax) in the prior year.
• Amortization of acquisition-related intangible assets of $79 million ( $107 million pre-tax) in the current quarter; $85 million ( $115 million pre-tax) in the prior year.
• Impact of the U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of $5 million ( $6 million pre-tax) in the current quarter.
• Impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank, of $13 million ( $18 million pre-tax) in the current quarter; a net recovery of $3 million ( $4 million pre-tax) in the prior year.
• A charge of $131 million ( $160 million pre-tax) related to tax measures enacted by the Canadian government that amended the GST/HST definition for financial services in the prior year.

TORONTO , Aug. 27, 2024 /CNW/ - For the third quarter ended July 31, 2024 , BMO Financial Group (TSX:BMO) (NYSE:BMO) recorded net income of $1 ,865 million or $2 .48 per share on a reported basis, and net income of $1,981 million or $2.64 per share on an adjusted basis.

"This quarter, BMO delivered strong pre-provision, pre-tax earnings and met our commitment to positive operating leverage for the quarter and year-to-date, reflecting good cost discipline and the sustained strength of our operating performance. While the cyclical increase in credit costs has resulted in loan loss provisions above our historical range, performance has been supported by operating momentum across our diversified businesses, including continued revenue growth in Canadian Personal and Commercial Banking and stronger client activity in our market-sensitive businesses. Across our U.S. markets, we're adding new customers and expanding capabilities, contributing to consistent pre-provision-pre-tax earnings in our U.S. Segment," said Darryl White , Chief Executive Officer, BMO Financial Group.

"With our strategic goals firmly in place, a strong balance sheet, robust capital and liquidity, we are well positioned to deliver sustainable returns to our shareholders. How we live our Purpose, to Boldly Grow the Good in business and life , continues to be recognized, including being named to Corporate Knights' ranking of Canada's Best 50 Corporate Citizens for the 23 rd consecutive year," concluded Mr. White.

Concurrent with the release of results, BMO announced a fourth quarter 2024 dividend of $1.55 per common share, unchanged from the prior quarter and an increase of $0.08 or 5% from the prior year. The quarterly dividend of $1.55 per common share is equivalent to an annual dividend of $6.20 per common share.

The foregoing section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.

Third Quarter 2024 Performance Review

Adjusted results and ratios in this section are on a non-GAAP basis. Refer to the Non-GAAP and Other Financial Measures section for further information on adjusting items. The order in which the impact on net income is discussed in this section follows the order of revenue, expenses and provision for credit losses, regardless of their relative impact.

Canadian P&C

Reported net income was $914 million , an increase of $33 million or 4% from the prior year, and adjusted net income was $920 million , an increase of $31 million or 3%. Results reflected a 7% increase in revenue, driven by higher net interest income due to balance growth and higher margins, higher expenses and a higher provision for credit losses.

U.S. P&C

Reported net income was $470 million , a decrease of $32 million or 6% from the prior year, and adjusted net income was $539 million , a decrease of $40 million or 7% from the prior year.

On a U.S. dollar basis, reported net income was $344 million, a decrease of $32 million or 9% from the prior year, and adjusted net income, which excludes amortization of acquisition-related intangible assets, was $395 million, a decrease of $39 million or 9%. Results reflected lower revenue driven by a decrease in non-interest revenue, lower expenses and a higher provision for credit losses.

BMO Wealth Management

Reported net income was $362 million , a decrease of $34 million or 9% from the prior year, and adjusted net income was $364 million , a decrease of $33 million or 8%. Wealth and Asset Management reported net income was $300 million, an increase of $91 million or 44%, reflecting higher revenue due to growth in client assets, including stronger global markets, partially offset by lower net interest income, as well as lower expenses. Insurance net income was $62 million, a decrease of $125 million from the prior year, primarily due to changes in portfolio positioning during the transition to IFRS 17.

BMO Capital Markets

Reported net income was $389 million, an increase of $94 million or 32% from the prior year, and adjusted net income was $394 million, an increase of $93 million or 31%. Results reflected higher revenue in both Global Markets and Investment and Corporate Banking driven by higher trading, underwriting and advisory, and corporate banking-related revenue, as well as lower expenses and a higher provision for credit losses.

Corporate Services

Reported net loss was $270 million , compared with reported net loss of $509 million in the prior year, and adjusted net loss was $236 million , compared with adjusted net loss of $18 million . Reported net loss decreased, primarily due to lower acquisition and integration costs and the impact of tax measures in the prior year. Adjusted net loss increased due to lower revenue, partially offset by lower expenses.

BMO's Common Equity Tier 1 Ratio was 13.0% as at July 31, 2024 , a decrease from 13.1% at the end of the second quarter of 2024, with internal capital generation more than offset by higher source currency risk-weighted assets. 

Credit Quality

Total provision for credit losses was $906 million, compared with a provision of $492 million in the prior year. The provision for credit losses on impaired loans was $828 million, an increase of $495 million, due to higher provisions in U.S. P&C, Canadian P&C and BMO Capital Markets. The provision for credit losses on performing loans was $78 million, compared with a provision of $159 million in the prior year. The $78 million provision for credit losses on performing loans in the current quarter was primarily driven by portfolio credit migration.

Refer to the Critical Accounting Estimates and Judgments section of BMO's 2023 Annual Report and Note 4 of our audited annual consolidated financial statements for further information on the allowance for credit losses as at October 31, 2023.

Regulatory Filings

BMO's continuous disclosure materials, including interim filings, annual Management's Discussion and Analysis and audited annual consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular, are available on our website at www.bmo.com/investorrelations , on the Canadian Securities Administrators' website at www.sedarplus.ca , and on the EDGAR section of the U.S. Securities and Exchange Commission's website at www.sec.gov . Information contained in or otherwise accessible through our website ( www.bmo.com ), or any third-party websites mentioned herein, does not form part of this document.

Caution Regarding Forward-Looking Statements 

Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this document may include, but are not limited to: statements with respect to our objectives and priorities for fiscal 2024 and beyond; our strategies or future actions; our targets and commitments (including with respect to net zero emissions); expectations for our financial condition, capital position, the regulatory environment in which we operate, the results of, or outlook for, our operations or the Canadian, U.S. and international economies; plans for the combined operations of BMO and Bank of the West; and include statements made by our management. Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "project", "intend", "estimate", "plan", "commit", "target", "may", "schedule", "forecast", "outlook", "seek" and "could" or negative or grammatical variations thereof.

By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors – many of which are beyond our control and the effects of which can be difficult to predict – could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: general economic and market conditions in the countries in which we operate, including labour challenges and changes in foreign exchange and interest rates; the anticipated benefits from acquisitions, including Bank of the West, are not realized; changes to our credit ratings; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national or international economies, as well as their heightening of certain risks that may affect our future results; cyber and cloud security, including the threat of data breaches, hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; technology resiliency; failure of third parties to comply with their obligations to us; political conditions, including changes relating to, or affecting, economic or trade matters; climate change and other environmental and social risks; the Canadian housing market and consumer leverage; inflationary pressures; global supply-chain disruptions; technological innovation and competition; changes in monetary, fiscal or economic policy; changes in laws, including tax legislation and interpretation, or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs and capital requirements; weak, volatile or illiquid capital or credit markets; the level of competition in the geographic and business areas in which we operate; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to execute our strategic plans, complete proposed acquisitions or dispositions and integrate acquisitions, including obtaining regulatory approvals; critical accounting estimates and judgments, and the effects of changes in accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; global capital markets activities; the possible effects on our business of war or terrorist activities; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.

We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For more information, please refer to the discussion in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, insurance, liquidity and funding, operational non-financial, legal and regulatory, strategic, environmental and social, and reputation risk, in the Enterprise-Wide Risk Management section of BMO's 2023 Annual Report, and the Risk Management section in our Third Quarter 2024 Report to Shareholders, all of which outline certain key factors and risks that may affect our future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting shareholders and analysts in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.

Material economic assumptions underlying the forward-looking statements contained in this document include those set out in the Economic Developments and Outlook section of BMO's 2023 Annual Report, as updated in the Economic Developments and Outlook section and the Risk Management - Update on General Economic Conditions section in our Third Quarter 2024 Report to Shareholders, as well as in the Allowance for Credit Losses section of BMO's 2023 Annual Report, as updated in the Allowance for Credit Losses section in our Third Quarter 2024 Report to Shareholders. Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, we primarily consider historical economic data, past relationships between economic and financial variables, changes in government policies, and the risks to the domestic and global economy.

Non-GAAP and Other Financial Measures 

Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements and our unaudited interim consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. References to GAAP mean IFRS. We use a number of financial measures to assess our performance, as well as the performance of our operating segments, including amounts, measures and ratios that are presented on a non‑GAAP basis, as described below. We believe that these non‑GAAP amounts, measures and ratios, read together with our GAAP results, provide readers with a better understanding of how management assesses results.

Non-GAAP amounts, measures and ratios do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results.

Certain information contained in BMO's Management's Discussion and Analysis dated August 27, 2024 for the period ended July 31, 2024 (Third Quarter 2024 Report to Shareholders) is incorporated by reference into this document. For further details on the composition of non-GAAP amounts, measures and ratios, including supplementary financial measures, please refer to the Glossary of Financial Terms section in our Third Quarter 2024 Report to Shareholders which is available at www.sedarplus.ca .

Our non‑GAAP measures broadly fall into the following categories:

Adjusted measures and ratios

Management considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non‑interest expense, provision for credit losses and income taxes, as detailed in the following table. Adjusted results and measures presented in this document are non‑GAAP. Presenting results on both a reported basis and an adjusted basis permits readers to assess the impact of certain items on results for the periods presented, and to better assess results excluding those items that may not be reflective of ongoing business performance. As such, the presentation may facilitate readers' analysis of trends. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results.

Tangible common equity and return on tangible common equity

Tangible common equity is calculated as common shareholders' equity, less goodwill and acquisition-related intangible assets, net of related deferred tax liabilities. Return on tangible common equity is commonly used in the North American banking industry and is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed organically.

Measures net of insurance claims, commissions and changes in policy benefit liabilities

For periods prior to November 1, 2022, we presented adjusted revenue on a basis net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), and our efficiency ratio and operating leverage were calculated on a similar basis. Measures and ratios presented on a basis net of CCPB are non-GAAP amounts. For more information, refer to the Insurance Claims, Commissions and Changes in Policy Benefit Liabilities section of the 2023 Annual MD&A. Beginning the first quarter of 2023, we no longer report CCPB, given the adoption and retrospective application of IFRS 17, Insurance Contracts (IFRS 17).

This Non-GAAP and Other Financial Measures section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.

Non-GAAP and Other Financial Measures

Summary of Reported and Adjusted Results by Operating Segment

Return on Equity and Return on Tangible Common Equity

Return on Equity by Operating Segment  (1)