Income Statement Presentation
First, for the IFRS, separate disclosure of both the expenses and incomes which are exceptional in either incidence, size or nature is needed to make an explanation regarding the business performance. For the US GAAP, the term “exceptional items” is not used yet an item that is characterized by significant nature can be disclosed separately in the income statement, and the case is only when income whose origin is operations is calculated and, also whose notes have been described. Secondly, there is the prohibition of extraordinary items from being presented in the income statement when preparing IFRS while such extraordinary items are allowed in the US GAAP.
Statement of Owner’s Equity Presentation
For the IFRS, the statement details the equity reconciliation, accumulated profit/loss movement and owners’ capital transaction while US GAAP does not. Secondly, for the IFRS, the presentation of the statement is primary unless the presentation of “Statement of recognised income and expense (SORIE)” is made while for the US GAAP no such is applicable.
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Statement of Cash Flow Presentation
The US GAAD prescribes that the interest received and interest paid should be regarded as operating activities while IFRS prescribes its own policy, the way they desire the interest will be is appropriate. Secondly, GAAP specifies that accounted dividends paid are presented in the financing section while the operating section should contain the dividends received. The IFRS have their own dividends’ categorization in either the financing or operation section.
Balance Sheet Presentation
US GAAP standards require that the equity, liabilities, and assets be presented in a decreasing liquidity order while IFRS begins with the least to the most liquid. Secondly, for the US GAAP, the presentation of the balance sheet is done with the total assets equal to shareholder's equity and total liabilities while the IFRS has no such format.
How the Changes will Impact the U.S. Corporations' Financial Reporting
U.S. corporations' users and preparers of accounts should focus on the presentational differences and ensure they do with care, that is, when doing the interpretation of both the accounting models and financial information. Such corporations and their financial reporting need not to underestimate such presentation differences and disclosure, which represents the firms’/corporations' costs and time incurred when doing the drafts for both the GAAP and IFRS for the first time. While the presentation differences and changes are existent among the preparers, awareness is required for the "Financial Accounting Standards Board (FASB)" and "International Accounting Standards Board (IASB)" that are focused on improving financial information usefulness.
References
https://online.hbs.edu/blog/post/gaap-vs-ifrs
https://www.diffen.com/difference/GAAP_vs_IFRS
https://www.dummies.com/business/accounting/key-financial-statement-differences-between-gaap-and-the-ifrs/
