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A PDF version of this publication is attached here: IFRS & US GAAP guide (PDF 3.7mb)
PwC is pleased to offer our updated IFRS and US GAAP: similarities and differences guide. This publication is designed to alert companies, investors, and other capital market participants to the major differences between IFRS and US GAAP.
It would appear that the use of IFRS in the United States by public companies is off the table, at least for now. However, as discussed in Chapter 1, being financially bilingual continues to be important for US capital market participants due to IFRS reporting needs of multinational companies and cross-border mergers and acquisitions.
Each topical chapter consists of the following:
A conceptual discussion of the current IFRS and US GAAP similarities and differences
A detailed analysis of current differences between the frameworks, including an assessment of the impact of the differences
In addition, this publication includes an overview of IFRS for small and medium-sized entities.
This publication is not all-encompassing. It focuses on those differences that we generally consider to be the most significant or most common. When applying the individual accounting frameworks, companies should consult all of the relevant accounting standards and, where applicable, national law.
Summary of significant changes
Following is a summary of recent noteworthy revisions to the guide. Additional updates may be made to keep pace with significant developments.
Revisions made in February 2022
Chapter 6, Assets – non-financial assets
  • SD 6.19 was added to address the useful life of leasehold improvements.

Chapter 12, Consolidation
  • SD 12.4 was updated to enhance the discussion around the variable interest entity model under US GAAP.
  • SD 12.4.1 through SD 12.4.4 were added to provide additional information on the specific drivers of differences in consolidation between US GAAP and IFRS.
  • SD 12.6 through SD 12.7 address additional topics related to consolidation, including the accounting for changes in ownership interest.
  • SD 12.8 was updated to address additional topics related to the equity method, including SD 12.8.11, which was updated to reflect the guidance in ASU 2020-01.
  • SD 12.9 was updated to provide additional guidance on the accounting for joint arrangements.

Chapter 13, Business combinations
  • SD 13.2 was enhanced to provide additional guidance regarding the definition of a business when determining whether the acquisition method applies to a transaction.
  • SD 13.4 was added to address a narrow scope amendment to IFRS 3.
  • SD 13.5 and SD 13.5A were updated to provide enhanced guidance on the assignment and impairment of goodwill subsequent to and prior to adoption of ASU 2017-04, respectively.
  • SD 13.6 was added to discuss the accounting for preexisting contingent consideration of an acquiree assumed by the acquirer in a business combination.
  • Former SD 13.6 was removed. The related guidance is now included in SD 6.
  • SD 13.14 was added to provide guidance on the accounting for payables and debt assumed in a business combination.
  • SD 13.15 was added to address the remeasurement of an acquirer’s previously held equity interest.
  • SD 13.16 and SD 13.17 were added to provide additional information on the accounting for certain leasing topics under ASC 842/IFRS 16 in a business combination.
  • SD 13.18 was added to address the accounting for contract assets and contract liabilities acquired in a business combination subsequent to the adoption of ASU 2021-08.

Chapter 15, Other accounting and reporting topics
  • The structure of SD 15 was rearranged to combine topical areas; consequently, certain section numbers are not used.
  • SD 15.22 was added to discuss the accounting for long-lived assets held for sale.
  • SD 15.23 was added to provide information on the accounting for long-lived assets to be distributed to owners.
  • SD 15.24 was added to address presentation and disclosure requirements related to discontinued operations.
  • SD 15.27 was enhanced to address disclosure requirements related to segment reporting.

Revisions made in September 2021
Chapter 17, Reference rate reform
  • SD 17 was added to provide guidance comparing and contrasting ASC 848, Reference rate reform, to the Phase 1 and Phase 2 IBOR reform amendments issued by the IASB. Both the US GAAP and IFRS guidance were issued to provide accounting relief from the effects of reference rate reform.

This publication has been prepared for general informational purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.

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