Chapter 16: Q2IFRS (page 896)
Question: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for dilutive securities, stock-based compensation, and earnings per share.
Short Answer
Answer
IFRS and U.S. GAAP follow similar model, dilutive securities, and earnings per share IFRS and U.S. GAAP are considerably something similar in the terms of accounting.
Under U.S. GAAP the proceeds of convertible debt are accounted as long-term debt. Whereas under IFRS, convertible bonds are divided into equity and debt component.