IFRS and U.S. GAAP have significant differences in the reporting of securities with characteristics of debt and equity, such as convertible debt.

Question

Quizplus · Accepted Answer

IFRS and U.S. GAAP have different rules for classifying and reporting securities with characteristics of debt and equity, such as convertible debt. For example, under IFRS, convertible debt may be classified as either debt or equity based on the conversion features and other characteristics, while under U.S. GAAP, convertible debt is generally classified as debt and recognized on the balance sheet as such.