US GAAP to IFRS Conversion. Consolidated balance sheet (statement of financial position)

  US GAAP to IFRS conversion Name Institution Date       Reporting entities need to prepare and present a complete set of financial statements in each financial year including notes and statement of financial position when certain accounting policies are adopted. Even though, the conceptual financial reporting frameworks underlying U.S. GAAP and IFRS are very similar, there are differences in the way some items are recognized and recorded in the financial statements. IAS 7 requires that all the reporting entries present a statement of cash flows, which analyzes the changes in cash and cash equivalents.  IAS 7 Statement of Cash Flows focuses on the preparation of the so cash flow statement and establishes the direct method and indirect method of preparation, but it recommends the first since it considers that it provides more of information.  The paper will focus on in the recast statement of Ford’s cash flows and changes in the presentation of the statement of financial position  The presentation of cash flows by segments makes it easier to understand the relationships between the entity’s cash flows as a whole and those of each of its component parts, the variability and availability of the cash flows in different segments. There were no changes in the taxes on income in the recast cash flow statement as IAS7 (35)-36 requires that they are disclosed separately and classified under the operating cash flows segment. On the other hand, IAS allows the Interest, dividends to be in either the operating or financing activities classification, but since the dividends are returns on investments they were still calcified under activities in the recast statement (Baik, et al, 2016). In the cash flow statement the equity investment (earnings) losses in excess of dividends received was placed in the financing activities rather than operating activities as was the case in the US GAAP. While the payment excludes dividends,  the assumption that such equity investments are similar to dividends means that they can be treated in  similar way  in the cash flow statement under GAAP dividends paid are under financing activities, but under the IFRS, they can be financing and operating. IAS7 (38) covers the dividends from joint ventures and associates while IAS7 (31), (33) other dividends (IAS, 2018).   The IFRS highlights that the deferred tax liabilities and deferred tax assets are to be classified as non-current, and there has been convergence with the US GAAP a s  these items are also recorded under the classification. Nonetheless if there are adjustments and disclosures this should be noted under IAS 8 (Bellandi, 2012).  The acquisitions and divestitures affect the deferred tax asset and liabilities as this did not change as already noted in the notes, and since these are estimates similar estimation methods would be used and future losses would be carried forward. The notes provide relevant information relevant information on the entity and this presentation is relevant in both the US GAAP and IFRS. The statement of financial position (balance sheet) reflects the financial situation of an economic entity at a certain date. Its structure is made...