IFRS and U.S. GAAP are relatively similar with respect to current liabilities and contingencies. Relatively minor differences relate to when financing must be in place for a liability expected to be refinanced to be classified as long term. Also, with respect to contingent losses, IFRS defines probable at a lower threshold, requires the accrual of the expected value of loss, and requires the use of present values when measuring amounts to be accrued. Contingent gains are not accrued under U.S. GAAP, but are accrued under IFRS when they are considered to be virtually certain to occur.

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IFRS and US GAAP have some differences in accounting for current liabilities and contingencies but t... View the full answer