IFRS and GAAP have similar definitions of liabilities but have a different approach for recording certain liabilities. Key Points Following are the key similarities and differences between GAAP and IFRS as related to accounting for liabilities. Similarities expected to result in an outflow from the entity of resources embodying economic benefits. provide more useful information (such as financial institutions). When current liabilities (also called short-term liabilities) are presented, they are generally presented in order liquidty. - Under IFRS, liabilities are classified as current if they are expected to be paid within 12 months. - The basic calculation for bond valuation is the same under GAAP and IFRS. In addition, the accounting for bond liability transactions is essentially the same between GAAP and IFRS. record: CashBondsPayable97,00097,000 Differences Looking to the Future equity securities. IFRS Exercises IFRS10.1 Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for liabilities. IFRS10.2 Ratzlaff Company issues (in euros) 2 million, 10-year, 8% bonds at 97 , with interest payable annually on January 1. Instructions a. Prepare the journal entry to record the sale of these bonds on January 1, 2020. b. Assuming instead that the above bonds sold for 104, prepare the journal entry to record the sale of these bonds on January 1,2020