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US GAAP | IFRS |
With some limited exceptions for certain financial assets addressed by other applicable guidance (e.g., an investment in a consolidated subsidiary, employer’s rights under employee benefit plans), US GAAP permits entities to elect the fair value option for any recognized financial asset.
The fair value option may only be elected upon initial recognition of the financial asset or upon some other specified election dates identified in ASC 825-10-25-4.
See SD 12.8.5 for differences related to the fair value option for equity-method investments.
| Under IFRS 9, the only instance when an entity can irrevocably designate financial assets as measured at FVTPL at initial recognition is when doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as “an accounting mismatch”) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.
See SD 12.8.5 for differences related to the fair value option for equity-method investments.
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Select a section below and enter your search term, or to search all click IFRS and US GAAP: similarities and differences