Appendix A — Differences Between U.S. GAAP and IFRS Accounting Standards

 

ASC 280

IFRS 8

Entity-wide disclosures of long-lived assets by geography

Long-lived assets within the entity-wide disclosures do not include intangible assets.

See further discussion in Section 5.5.3.

Under IFRS Accounting Standards, noncurrent assets are defined as assets that do not meet the definition of a current asset. Therefore, they would include intangible assets.

In addition, paragraphs BC56 and BC57 of IFRS 8 indicate that there is no requirement to include a subtotal for tangible noncurrent assets in the disclosure of segment assets (although an entity may choose to include the subtotal). Paragraph BC60 of IFRS 8 indicates that this is different from the guidance in ASC 280.

Segment liabilities

Disclosure of segment liabilities is permitted but not required.

Disclosure of segment liabilities is required if such information is regularly provided to the CODM.

Entities with a matrix form of organization

Operating segments are identified on the basis of products and services.

Operating segments are identified on the basis of the “core principle,” regardless of the form of organization used. The core principle, as stated in paragraphs 1 and 20 of IFRS 8, is that operating segments must be identified in a manner that enables users of the financial statements “to evaluate the nature and financial effects of the business activities in which [the entity] engages and the economic environments in which it operates.” Management will therefore be required to exercise judgment in determining which of the bases of segmentation satisfies this objective.