International Finance and Accounting Handbook

(avery) #1

12 • 6


International

The

Allowed

United States

Japan

United Kingdom

France

Germany

Netherlands

Switzerland

Canada

Italy

Brazil

Benchmark

Alternative

Capitalization of

Not allowed

Allowed in

Allowed in

Allowed in

Not allowed

Allowed in

Allowed in

Allowed in

Allowed in

Allowed

Required in

None

research and

certain

certain

certain

certain

certain

certain

certain

certain

development

circumstances circumstances

circumstances

circumstances circumstances circumstances circumstances

circumstances

Fixed asset

Not allowed

Not allowed

Allowed

Allowed

Not allowed

Allowed in

Allowed in

Not allowed

Required in

Allowed

Not allowed

Allowed

revaluation stated

certain

certain

certain

at amount in

circumstances circumstances

circumstances

excess of costInventory valuation Allowed

Allowed

Allowed but

Allowed

Allowed in

Allowed

Allowed

Allowed

Allowed

Allowed but Not allowed

Allowed

using LIFO

rarely done

certain

rarely done

circumstances

Finance leases

Required

Allowed in

Required

Allowed

Allowed in

Required

Allowed

Required

Not allowed

Allowed in

Required

None

capitalized

certain

certain

certain

circumstances

circumstances

Pension expense

Required

Allowed

Required

Allowed

Required

Required

Allowed

Required

Allowed

Allowed

Required

None

accrued duringperiod of serviceBook and tax

Required

Allowed in

Required in

Required

Allowed in

Required

Allowed

Required

Generally

Required

Allowed

None

timing differences

certain

certain

certain

required

presented on the

circumstances circumstances

circumstances

balance sheet asdeferred taxCurrent rate

Required for

Generally

Required

Required for

Allowed

Required for

Allowed

Required for

Required

Required

Required for

None

method used for

foreign

required

self-sustaining

self-sustaining

self-sustaining

self-sustaining

foreign currency

operations

foreign

foreign

foreign

foreign

translation

whose

operations

operations

operations

operations

functionalcurrency isother thanthe reportingcurrency

Pooling method

Required in

Allowed

Required in

Not allowed

Allowed in

Allowed but

Allowed but

Allowed in

Allowed in

Allowed but Required i

n

None

used for mergers

certain

certain

certain

rarely done

rarely done

rare

rare

rarely done

certain

circumstances

circumstances

circumstances

circumstances circumstances

circumstances

Equity method

Required

Required

Required

Required

Required

Required

Allowed in

Required

Allowed

Required

Required

None

used for 20–50%

certain

ownership

circumstances

Exhibit 12.2.

Comparative Analysis of Accounting Differences Around the World.
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