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  • 1. International Accounting and Financial Reporting Winter 2010 William F. O’Brien, MBA, CPA
  • 2. Session IV Players and Transitions
  • 3. Session IV Objectives
    • Players and prior efforts
    • The adoption roadmap
    • A new set of financial statements
    • The adoption debate
  • 4. Recall this Concept: What Exactly is Convergence?
    • Global options
      • Single standard mentality-US GAAP
      • Harmonization: minimal differences
      • Convergence: best of the best
    • Stated goal:
      • Single set of high quality, understandable & enforceable global accounting standards
      • Transparency and comparability
  • 5. Other Players; Prior Work-I
    • International Accounting Standards Committee (IASC)
      • Voluntary funding; part-time members
      • Non-binding standards-IAS
      • More focus on accommodation than rigors
      • Becomes IASB (Board) in 2001
      • U.S. has strong influence; therefore, credibility
    • International Accounting Standards Board (IASB)-London
      • 12 F/T members; 2 P/T members (academics)
      • Funding via the IASC Foundation
      • Sets IFRS
    • International Financial Reporting Interpretations Committee (IFRIC)-interprets IFRS & provides guidance
      • Perhaps a similar role for FASB, post adoption?
  • 6. Other Players; Prior Work-II
    • International Org. of Sec. Commissions (IOSCO)
      • Global org. of sec. regulators
      • Supported stronger IASC and single ww standard
    • European Union
      • Directives written into local law
      • 4 th and 7 th directives
        • Form and content
        • Consolidation
      • Adopted IFRS on 1/1/05
    • International Federation of Accountants (IFAC)
      • Global auditing standards
      • AICPA is member of IFAC
  • 7. SEC Proposed Adoption Roadmap-I
    • Issued 11/14/08; comment period thru 2/19/09
      • Political issue-Cox’s baby, Schapiro has finally embraced the urgency
    • Early adoption: FYE after 12/15/09
      • Makes 12/31/06 initiation date
      • Most companies are not ready
      • No one is stepping forward
  • 8. SEC Proposed Adoption Roadmap-II
    • First “normal” adoption: FYE after 12/15/14
      • Makes 12/31/11 initiation date
      • Later adoption date of FYE after 12/15/16
    • Key milestone evaluation 2011-go or no go
      • Continued work on convergence
      • Resolution of IASB funding and authority issues
      • Making IFRS XBRL-ready
      • Progress in IFRS education
      • Results of the early filer program
  • 9. Statement of Fin. Position
  • 10. Statement of Fin. Position
  • 11. Stmt. of Compr. Inc.
  • 12. The Adoption Debate
    • Resolved that your company should “early” adopt IFRS for external reporting.
    • ½ the class will prepare an affirmative position
    • ½ the class will prepare a negative position
  • 13. Key Points-Session IV
    • Convergence revisited
    • Other players and positions
    • The Adoption Roadmap
    • The converged F/S proposal