Npae Vs Gaap

NPAE
VS
US GAAP
Chanitra, Manassawan, Oranas,
Passachon, Sinich, Tanaphorn, Wannida
Co., Ltd
Acquirer
Position
Target Company
US GAAP
Accounting
Standard
NPAE
Nature of the
Company
Engage in the
manufacture and
distribute of consumer
and chemical products
Design, develop,
market and sell athletic
footwear, apparel,
equipment,
accessories, and
services.
NPAE VS US GAAP
Presentation Information
Co.,
Ltd
Statement of
Comprehensive income
Statement of
Comprehensive income
NOT REQUIRED
YES
Statement of Cash Flow
Statement of Cash Flow
OPTIONAL
YES
Statement of Financial
Position for 3 periods
(if there is adjustment or reclassification)
NOT REQUIRED
Statement of Financial Position for

3 periods
(if there is adjustment or reclassification)
YES
NPAE VS US GAAP
Cash
Co.,
Ltd
Overdrafts are
current liabilities,
not to offset with cash
and cash equivalents.
Bank overdrafts are not

included in cash and
cash equivalents;
changes in the
balances of bank
overdrafts are
classified as financing
cash flows.
NPAE VS US GAAP
Accounts Receivables
Co.,
Ltd
Account receivables are stated
at cost less allowance for
doubtful account
The allowance is determined based on
the percentage of outstanding debtors
classified by aging of balance.
Methods of estimating the amount of
potentially uncollectible accounts
receivable
1. Based on the percentage of net
credit sales
2. Based on the percentage of
outstanding debtors classified by aging
of the balance
3. Based on review of specific balance
Account receivables are

presented on a balance sheet
atnet realizable value
The allowance is determined based
on historical levels of credit losses
and judgments about the
creditworthiness of significant
customers based on ongoing credit
evaluations.
Methods of estimating the amount of
potentially uncollectible accounts
receivable
1. Based on the percentage of sales
amount
2. Based on the percentage of
accounts receivable amount
3. Based on the aging schedule
NPAE VS US GAAP
Inventories
Co.,
Ltd
Inventories are valued at lower of
standard cost or market.
Inventories are valued at lower of

standard cost or NRV.
NRV is estimated selling price

less cost of completion and
sell.
Market is the current

replacement cost, that cannot
be greater than NRV or less
than NRV reduced by a normal
sales margin.
NRV is estimated selling price
less cost of completion and
sell.
NPAE VS US GAAP
Investments
Co.,
Ltd
Investments are measured at Fair
value
Investments are measured at Fair

value
Fair values are measured at the

amount that the seller and buyer
are acknowledge and willing to
exchange and negotiate freely
without the involvement of the
third parties.
Fair values are measured at

recurring basis:
Level 1: Observable inputs such as
quoted prices in active markets for
identical assets or liabilities.
Level 2: Inputs other than quoted
prices that are observable for the asset
or liability, either directly or indirectly
Level 3: Unobservable inputs for
which there is little or no market data
available, which require the reporting
entity to develop its own assumptions .
NPAE VS US GAAP
Investments
NPAE VS US GAAP
Property, Plant, and Equipments

Co.,
Ltd
Land is stated at cost.

Buildings and equipment are
stated at cost less
accumulated depreciation and
allowance for diminution in
value.
Depreciation
Depreciation of buildings
and equipment is
calculated by reference to
their cost on straight-line
basis over useful life.
Property, plant and equipment

are recorded at cost but
presented at cost less
accumulated depreciation and
allowance for impairment.
Depreciation
Depreciation is determined
on a straight-line basis for
buildings, leasehold
improvements, machinery
and equipment.
NPAE VS US GAAP
NPAE VS US GAAP

Co.,
Ltd
Diminution of Value
When there is an indicator,
test for diminution by
comparing carrying amount
with fair value less cost to
sell
Recognize loss from
diminution of value if
carrying amount is higher
than selling price less cost to
sell
Reversal of diminution in
value is allowed
Impairment
Two-step impairment test
1. Compare carrying amount
with undiscounted cash flow.
2. If the carrying amount is
higher than the
undiscounted cash flows, an
impairment loss is measured
as the difference between
the carrying amount and fair
value.
. Reversal of impairments is
prohibited
NPAE VS US GAAP
Intangible Assets
Co.,
Ltd
Stated at cost less any

accumulated amortization
and allowance for
diminution in value (if any)
Definite-Lived
Recorded at cost and are
amortized over the
estimated useful life and
maybe impair
Such as computer software
Indefinite-Lived
Recorded at cost
Performed annual
impairment test
Such as goodwill and
trademarks
NPAE VS US GAAP
Intangible Assets
NPAE VS US GAAP
Investment Properties
Co.,
Ltd
Stated at cost less any

accumulated depreciation
and allowance for
diminution in value (if
any)
There is no specific
definition of investment
property.
NPAE VS US GAAP
Borrowing Cost
Measurement
Co.,
Ltd
Borrowing costs are offset
by investment income
earned on those
borrowings.
For borrowings associated

with a specific qualifying
asset, actual borrowing
costs are capitalized.
Interest earned on the

investment of borrowed
funds generally cannot
offset interest costs
incurred during the period.
For borrowings associated
with a specific qualifying
asset, borrowing costs
equal to the weightedaverage accumulated
expenditures times the
borrowing rate are
capitalized.
NPAE VS US GAAP
Borrowing Cost
Investment Property
Co.,
Ltd
Investment property is
separately defined and
may include property held
by lessees under a finance
or operating lease.
Investment property is not

separately defined and,
therefore, is accounted for
as held for use or held for
sale.
NPAE VS US GAAP
Lease
Co.,
Ltd
The land and building

elements of the lease are
considered separately when
evaluating all indicators unless
the amount that would initially
be recognized for the land
element is immaterial.
A lease of land and buildings

that transfers ownership to the
lessee or contains a bargain
purchase option would be
classified as a capital lease
by the lessee, regardless of the
relative value of the land.
no 25% test.
If the fair value of the land at

inception represents less
than 25% of the total fair
value of the lease, the lessee
accounts for the land and
building components as a
single unit
NPAE VS US GAAP
Income Taxes
Co.,
Ltd
Taxable profit method
Asset and Liability method
Provided in the
accounts at the amount
expected to be paid,
based on taxable profits
Recognition of deferred tax

assets and liabilities for the
expected future tax
consequences of temporary
differences between the
carrying amounts and the tax
basis of assets and liabilities.
Recording tax deferred

asset/liability is optional.
NPAE VS US GAAP
Provisions and Contingent Liabilities

US GAAP
IFRS
NAPEs
Definition of
probable
To describe a situation in
which the outcome is
likely to occur.
To describe a situation in
which the outcome is
more likely than not
to occur.
Same as IFRS
Likelihood of
occurrence
75 percent or greater
greater than 50 percent
Same as IFRS
Effect
Earlier recognition of
liabilities
Same as IFRS
Measuremen
t of
provisions
No standard, entities must

refer to guidance established
for specific obligations to
determine the appropriate
measurement methodology.
The best estimate of

the expenditure required
Same as IFRS
Effect
Higher liability being

recorded when there is a
range of possible
outcomes with equal
probability
Same as IFRS
NPAE VS US GAAP
Employees Benefits
Co.,
Ltd
Classified as
Provisions for long term
employee benefits
Classified as
Deferred income taxes and other
liabilities
Good company uses their estimate for

their long term employee benefits based
on
The employee's age,
Length of employment services and
Expected salary increase rate
US GAAP
Actuarial
method used
for defined
benefit plans
Different methods
are required
depending on the
characteristics of
the plans benefit
formula.
Nike uses actuarial to valuate their

estimation. The methods are required
depending on company characteristics.
IFRS
Projected unit
credit method is
required in all
cases.
NAPEs
using the best estimate of the
expenditure required to settle the
present obligation as at the end
of the reporting period. There is
no requirement to appoint an
actuary to calculate such
liabilities.
NPAE VS US GAAP
Revenue
Co.,
Ltd
Sales of good are recognized
when the significant risks and
rewards of ownership of the goods
have passed to the buyer. Sales are
the invoiced value, excluding value
added tax, of goods supplied after
deducting discounts and
allowances
Under USGAAP, revenue recognition is

based on fixed or determinable pricing
criterion, which results in contingent
amounts generally not being recorded as
revenue until the contingency is resolved.
Wholesale revenues are recognized
when title and the risks and rewards of
ownership have passed to the customer,
based on the terms of sale.
Retail store revenues are recorded at
the time of sale.
Provisions for post-invoice sales
discounts, returns and miscellaneous
claims from customers are estimated
and recorded as a reduction to revenue at
the time of sale.
NPAE VS US GAAP
Revenue
Co.,
Ltd
The preparation of financial
statements in conformity with
generally accepted accounting
principles requires management to
estimates and assumptions in
certain circumstances, affecting
amounts reported in these financial
statements and related notes.
Actual results could differ from
these estimates
The preparation of financial statements in

conformity with generally accepted
accounting principles requires
management to make estimates,
including estimates relating to
assumptions that affect the reported
amounts of assets and liabilities and
disclosure of contingent assets and
liabilities at the date of financial
statements and the reported amounts of
revenues and expenses during the
reporting period. Actual results could
differ from these estimates.
since NIKEs business cycle is
relatively short, actual results
related to these estimates are
generally known within the sixmonth period following the financial
statement date.

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Npae Vs Gaap

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NPAE

Statement of Cash Flow

Statement of Cash Flow

Statement of Financial Position for

Bank overdrafts are not

Account receivables are

Inventories are valued at lower of

NRV is estimated selling price

Market is the current

Investments are measured at Fair

Fair values are measured at the

Fair values are measured at

Property, Plant, and Equipments

Land is stated at cost.

Property, plant and equipment

Property, Plant, and Equipments

Property, Plant, and Equipments

Stated at cost less any

Stated at cost less any

For borrowings associated

Interest earned on the

Investment property is not

The land and building

A lease of land and buildings

If the fair value of the land at

Taxable profit method

Asset and Liability method

Recognition of deferred tax

Recording tax deferred

Provisions and Contingent Liabilities

greater than 50 percent

No standard, entities must

The best estimate of

Higher liability being

Good company uses their estimate for

Nike uses actuarial to valuate their

Under USGAAP, revenue recognition is

The preparation of financial statements in

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