Reporting Standards: US GAAP, IFRS and More

Every company in Kantivo is set up under one reporting framework. This page explains the options, what each changes, and why the choice is fixed once a company has transactions.

The Four Choices

When you create a company, Kantivo asks what kind of organisation it is. Each answer sets the company's reporting framework:

Option in Kantivo	Framework	Typical user
Small business — United States	US GAAP	US for-profit companies; the default
Business — International (IFRS)	IFRS	Companies reporting in the EU, UK, Canada, Australia and the many other jurisdictions that adopt IFRS
Nonprofit / 501(c)(3)	FASB ASC 958	US charities; adds restricted funds, functional expenses and the nonprofit statement set
Government / Special District	GASB	Local governments, special districts and fund-style HOAs; adds funds and fund-level statements

This page concentrates on the first two. The nonprofit and government frameworks have their own guides, linked in the sidebar.

Choosing: If the entity reports in the United States and is not a charity or a public body, choose US GAAP. If its financial statements are prepared for an IFRS jurisdiction or for stakeholders who expect IFRS, choose IFRS. Where there is any doubt, confirm with the accountant who signs off the statements.

When the Choice Is Made

Open the Company Manager and start a new company
Enter the name, fiscal year end and accounting method (cash or accrual)
Under What kind of organization is this?, select the framework
Create the company

Cash or accrual basis is a separate setting and is available under both US GAAP and IFRS.

Why It Locks

The framework is fixed once the company has any transactions. Until the first transaction is recorded you can change it in the company's settings. After that, Kantivo refuses the change and explains why.

A reporting framework is not a display preference. It shapes the chart of accounts, which inventory methods are allowed and, for the nonprofit and government options, the whole structure of the books. Switching under live data would leave records prepared under one set of rules being presented under another. If you genuinely need a different framework, create a new company under it and bring the balances across.

What Changes on the Statements

Under IFRS the primary statements carry the names used in IAS 1:

Statement	US GAAP title	IFRS title
Financial position	Balance Sheet	Statement of Financial Position
Performance	Income Statement (Profit & Loss)	Statement of Profit or Loss

The framework name, US GAAP or IFRS, appears with the report on screen and is printed in the header of the PDF and print versions, so a reader always knows which rules the figures were prepared under.

Your journal entries and balances are the same either way; the framework governs presentation and the rules Kantivo enforces, not the arithmetic.

Inventory: LIFO and IAS 2

IAS 2 does not permit the last-in, first-out cost formula. US GAAP does. Kantivo applies the difference for you:

US GAAP companies may choose FIFO, LIFO or Average Cost
IFRS companies see LIFO marked "Not permitted under IFRS" in inventory settings and cannot select it; FIFO and Average Cost remain available
If an IFRS company's costing method is somehow set to LIFO, Kantivo resets it to FIFO and tells you

Mixed Groups

The framework belongs to the company, not to the installation. A group can run its US entity under US GAAP and its overseas subsidiary under IFRS from the same Kantivo installation, each company presenting its statements under its own rules. For roll-ups across entities, see Consolidated Reports.

Common Questions

Does IFRS cost extra?

No. US GAAP and IFRS are both available on every plan. The nonprofit and government frameworks belong to their industry editions.

I picked the wrong framework. What now?

If the company has no transactions yet, change it in the company's settings. If it already has transactions, create a new company with the correct framework.

Does Kantivo produce full IFRS note disclosures?

No. Kantivo prepares the primary statements and the ledger behind them under the correct titles and rules. Note disclosures remain part of the year-end work your accountant prepares.