ICI » Topics » Differences between IFRS and US accounting principles
This excerpt taken from the ICI 6-K filed Mar 14, 2006.
Differences between IFRS and US accounting principles
SOP 96-1, a provision can only be discounted if the aggregate amount
of the liability and the timing of the future cash flow are fixed or
determinably reliable. Under IFRS, the Group holds discounted provisions
relating to environmental and legacy items associated with businesses
disposed of the liability and timing of the future cash flows of some
of these provisions is not fixed or determinably reliable. The liability
and timing of the future cash flows of some of these provisions is not
fixed or determinably reliable. As these discounts are unwound under
IFRS, a financing cost is charged to interest in the Income Statement.
New US Accounting
Standards not yet implemented
No. 154 Accounting Changes and Error Corrections
of APB Opinion No. 20 and FASB Statement No. 3). The Statement applies
to all voluntary changes in accounting principle, and changes the requirements
for accounting for and reporting of a change in accounting principle.
It also applies to changes required by an accounting pronouncement in
the unusual instance that the pronouncement does not include specific
transition provisions. The four main areas of accounting that this standard
applies to are as follows: (a) changes in accounting principles; (b)
changes in accounting estimates; (c) changes in reporting entities; and
(d) corrections of errors in previously issued financial statements.
This is designed to converge with IFRS. The Statement is effective for
accounting changes and corrections of errors made in fiscal years beginning
after 15 December 2005.