No. of Recommendations: 2
Relevant to Brookfield shareholders since Brookfield follows IFRS and everything else, at least for me, is GAAP.
Note difference between how fixed assets are measured. IFRS allows companies to elect fair value treatment meaning their reported value can increase or decrease as fair value changes. Whereas in GAAP, fixed assets are measured at their initial cost; their value can decrease via depreciation or impairments, but it can never increase. This is why book value can deviate lower from intrinsic value if earnings from non-financial units of the company start materially increasing.
IFRS vs GAAP Cheat Sheet
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