June 19, 2017

Cross Border: Do You Speak IFRS?

This PwC memo addresses the need for cross-border buyers & sellers to be fluent in the differences between US GAAP and IFRS accounting standards. Here’s an excerpt from the intro:

While “numbers” may seem to be a universal language, the stories they tell can convey very different meanings. The “era of convergence” between US GAAP and IFRS has ended. While new accounting standards may be closer aligned, there remain potentially significant differences in both the bottom-line
impact of accounting conventions and disclosure requirements.

Understanding these differences and their impact on key deal metrics, as well as both short- and long-term financial reporting requirements, will lead to a more informed decisionmaking process. It can also help minimize last-minute surprises that can significantly impact deal value or completion.

The memo reviews some of the common differences between GAAP & IFRS and highlights areas of potential concern for dealmakers.

John Jenkins