International Accounting  and Financial Reporting Winter 2010 William F. O’Brien, MBA, CPA
Session IV Players and Transitions
Session IV Objectives <ul><li>Players and prior efforts </li></ul><ul><li>The adoption roadmap </li></ul><ul><li>A new set...
Recall this Concept: What Exactly is Convergence? <ul><li>Global options </li></ul><ul><ul><li>Single standard mentality-U...
Other Players; Prior Work-I <ul><li>International Accounting Standards Committee (IASC) </li></ul><ul><ul><li>Voluntary fu...
Other Players; Prior Work-II <ul><li>International Org. of Sec. Commissions (IOSCO) </li></ul><ul><ul><li>Global org. of s...
SEC Proposed Adoption Roadmap-I <ul><li>Issued 11/14/08; comment period thru 2/19/09 </li></ul><ul><ul><li>Political issue...
SEC Proposed Adoption Roadmap-II <ul><li>First “normal” adoption: FYE after 12/15/14 </li></ul><ul><ul><li>Makes 12/31/11 ...
Statement of Fin. Position
Statement of Fin. Position
Stmt. of Compr. Inc.
The Adoption Debate <ul><li>Resolved that your company should “early” adopt IFRS for external reporting. </li></ul><ul><li...
Key Points-Session IV <ul><li>Convergence revisited </li></ul><ul><li>Other players and positions </li></ul><ul><li>The Ad...
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Jan. 13

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Transcript of "Jan. 13"

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