Latest Developments in IFRS –      Is the US Finally Ready to            Move Forward?Accounting Day9:15am – 10:35am (Trac...
Stephen G. Austin, CPA, MBA   Over 35 years of public accounting experience as an Audit    Partner with Price Waterhouse,...
Swenson Advisors, LLPA Regional Accounting Firm with Global Outreach■   PCAOB Registered Firm■   Offices in San Diego, Riv...
BREAKING NEWSDavid TweedieIASB chairman said:He wants to “stick to the June timeline to focus minds but       there would ...
BREAKING NEWS“IASB and FASB Report Progress on Convergence”    (Journal of Accountancy, 4/21/11)■ On April 14, 2011, FASB ...
BREAKING NEWSMichel BarnierMember of IASB’s monitoring board:  "Convergence should not be at the expense of quality."  "It...
BREAKING NEWSRobert GlauberIASB Trustee:      “Convergence was moving forward and it still               has some distance...
BREAKING NEWSMary SchapiroChairman of US SEC:          “I think the rigour and timeliness of           oversight is especi...
9
IFRS Timeline2001   Formation of the IASC Foundation and the IASB2002   EU passes regulation to adopt IFRS for listed enti...
Why Global Accounting Standards?■   Global Accounting Standards improve the functioning of    global capital markets by pr...
IFRS forSmall and Medium Enterprises  (SMEs/Private Entities)                               12
BREAKING NEWSSME accounting standards response ‘bigger thanexpected’ (Accountancy Age, 5/3/11)■   Stakeholders were first ...
Summary – IFRS for SMEs   Issued July 2009   Culmination of a five year project   Represents a stand alone set of    st...
Definition of Users   Small and medium-sized entities are entities that:    (a) Do not have public accountability, and   ...
30+ Topics   Financial statement presentation   Four separate financial statements   Footnotes   Accounting policies ...
30+ Topics, Continued   Reserves and contingencies   Revenues   Share-based payments   Impairments   Employee benefit...
Key Differences Between       Full IFRS and IFRS for SMEs   Jointly controlled entities - no proportional consolidation ...
Overview ofConvergence Process                      19
MoU ProcessFirst MoU – February 2006   Second MoU – 2008    Third MoU – 2009                            20
21
SEC Initial Work Plan (February 2010)                – Six Components1.   Sufficient development and     application of IF...
Subsequent Series of Progress   and Work Plan Reports                                23
Recent Changes at the Top of theIASB and FASB and their Impact on the Timing of Convergence                               24
Transitional Times   Tommaso Padoa-Schioppa – IFRS Foundation Chairman    • Dies of Heart Attack - Process for selecting ...
2010-2011New Pronouncements and Updates                             26
   One new standard – IFRS 9   One revised standard – IAS 24   Amendments to IFRS that were issued as    separate docum...
New Pronouncements   IFRS 9         Financial Instruments   IAS 24         Related Party Disclosures   IFRIC 18       T...
Amendments to IFRS Issued        as Separate Documents   Amendments to IFRS 7   Amendments to IFRIC 9 and IAS 39   Annu...
Status of Convergence Work                             30
Overview of theNew Revenue Recognition Model                                31
Work Plan for Remaining Priority            Convergence ProjectsRevenue recognition:   The IASB and FASB published a join...
Exposure DraftIssued in June 2010                      33
Key Components :           Revenue RecognitionStep 1   Identify the contracts with the customerStep 2   Identify the separ...
Expanded Footnote Disclosures                                35
36
Work Plan for Remaining Priority            Convergence ProjectsLeasing:   The objective of this project is to improve fi...
Work Plan for Remaining Priority          Convergence ProjectsFinancial instruments:   Efforts to improve our requirement...
Top 10 Industrialized countries     and their Use of IFRS              and How they Have Implemented      the New Standard...
Understanding theDifferences between   “Adoption”      and  “Adaptation”   (=Adaption?)                      40
China   Rules for Listed FilingsIs IFRS required for all listed companies?      No, however CAS (Chinese Accounting Stand...
India   Rules for Listed FilingsIs IFRS required for all listed companies?       No, Financial Statements must be prepare...
United Kingdom   Rules for Listed FilingsIs IFRS required for all listed companies?       Required for consolidated finan...
Germany Rules for Listed FilingsIs IFRS required for all listed companies?       Required for all consolidated financial ...
France   Rules for Listed FilingsIs IFRS required for all listed companies?       Required for consolidated financial sta...
Australia   Rules for Listed FilingsIs IFRS required for all listed companies?       Required for consolidated financial ...
New Zealand Rules for Listed FilingsIs IFRS required for all listed companies?      Required for consolidated and standal...
Japan Rules for Listed FilingsIs IFRS required for all listed companies?     Listed companies which meet certain requirem...
Spain Rules for Listed FilingsIs IFRS required for all listed companies?      IFRS is required for consolidated financial...
South Korea Rules for Listed FilingsIs IFRS required for all listed companies?       Adoption of IFRS is required for all...
“Deep Dive” into theProgress Report (October 29, 2010)   on the SEC Work Plan              andPractical Issues Surrounding...
Progress Report on SEC Work Plan        October 29, 2010                                   52
SEC “Preliminary Observations”                            (October 2011)Approaches to Incorporate IFRS into a Jurisdiction...
Convergence ApproachChina – Best Example   Moving closer   Not full incorporated   Follow “ASBEs” – Accounting Standard...
Endorsement Approach           (Vast Majority Follow this Approach)       Degree of deviation varies by jurisdiction    ...
Other Critical      SEC Observations and Concerns   Oversight of the IFRS Foundation?   Composition of the IFRS Foundati...
Understanding the New Term      “Condorsement”(Convergence + Endorsement)             and    What It Means to You!        ...
What to Expect from the SEC  in the Next 30-60 Days                              58
SEC will sponsor a Roundtable in July to   discuss benefits/challenges in potentially incorporating IFRS        into the f...
SEC sent a letter to the Center for Audit Quality –acknowledging that it would be impossible for foreign private issuers, ...
IFRS Foundation to Add Common-Practice        Tags to IFRS Taxonomy                                         61
What You and Your Team Should Be Doing Now                         62
PWC SurveyApril 2011             63
642011 US GAAP Convergence & IFRS Survey, 4/11/11
Some 43% respondents said the pace is too fast.     15% thought the pace was too slow.                                    ...
Predictive Timeline for     2011-2015?                          66
67
68
69
70
71
72
Personal Experience in 2011Teaching IFRS to the Chinese      at the MBA Level   at Shanghai University of Finance and Econ...
Thank You Stephen G. Austin, MBA, CPAsteve.austin@swensonadvisors.com  www.SwensonAdvisors.com      www.swentrack.com   ww...
Upcoming SlideShare
Loading in …5
×

Latest Developments in IFRS - Is the US Finally Ready to Move Forward?

1,320 views
1,241 views

Published on

Accounting Day 2011.

Steve Austin speaks about the very latest developments at the SEC, FASB, and IASB on the US convergence to IFRS, the latest status of “adoption” of these new standards in the top 10 industrialized countries in the world and to better understand the SEC’s recently released “IFRS Work Plan.”

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,320
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
34
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Latest Developments in IFRS - Is the US Finally Ready to Move Forward?

  1. 1. Latest Developments in IFRS – Is the US Finally Ready to Move Forward?Accounting Day9:15am – 10:35am (Track A)May 9, 2011Stephen G. Austin, CPA, MBAFirm Managing PartnerSwenson Advisors, LLP 1
  2. 2. Stephen G. Austin, CPA, MBA Over 35 years of public accounting experience as an Audit Partner with Price Waterhouse, McGladrey & Pullen, LLP, and Swenson Advisors, LLP Certified Public Accountant - California and Georgia Audit Committee Chairman - Avanir Pharmaceuticals, Rock Church, World Trade Center San Diego, and Santa Fe Christian Schools Serves on twenty Boards and related Committees Author of “Rise of the New Ethics Class” 2
  3. 3. Swenson Advisors, LLPA Regional Accounting Firm with Global Outreach■ PCAOB Registered Firm■ Offices in San Diego, Riverside County, and Hong Kong■ SEC/SOX - Audit, Tax, Compliance, Asia Pacific Compliance services, IFRS Consulting■ SOX Consulting Services with SWENTRACKTM - Automated Web Based Solutions■ Top #30 Accounting Firms in San Diego from 2009 – 2011■ Second Largest Accounting Firm in Riverside County■ Members of Integra International - 174 offices, 59 countries 3
  4. 4. BREAKING NEWSDavid TweedieIASB chairman said:He wants to “stick to the June timeline to focus minds but there would not be compromise on quality.” IFRS and FASB Extend Convergence Timetable and Issue April, 2011 Progress Report “Global accounting rule setters urged to take time,” 4/1/11, H.Jones 4
  5. 5. BREAKING NEWS“IASB and FASB Report Progress on Convergence” (Journal of Accountancy, 4/21/11)■ On April 14, 2011, FASB and IASB have jointly announced a further delay to the convergence of IFRS■ Announced that they would defer “by a few months” the timeline for: ■ Revenue recognition – End of 2011 ■ Leasing – End of 2011 ■ Financial instruments – End of 2011 ■ Insurance – First half of 2012■ Boards expect to issue new standards on fair value measurements and presentations of other comprehensive income in the new few weeks.■ April 21, 2011 – Progress Report 5
  6. 6. BREAKING NEWSMichel BarnierMember of IASB’s monitoring board: "Convergence should not be at the expense of quality." "It is essential that the IASB responds fully to concerns expressed by stakeholders, including additional field-testing of projects where needed.” “We should make use of the deadline set by the G20 (Group of 20 leading economies) recently.” “Global accounting rule setters urged to take time,” 4/1/11, H.Jones 6
  7. 7. BREAKING NEWSRobert GlauberIASB Trustee: “Convergence was moving forward and it still has some distance to go.” "We continue to tell the monitoring board they should be totally assured we do not and shall not permit due process to be sacrificed to any kind of deadline." “Global accounting rule setters urged to take time,” 4/1/11, H.Jones 7
  8. 8. BREAKING NEWSMary SchapiroChairman of US SEC: “I think the rigour and timeliness of oversight is especially important.” “Global accounting rule setters urged to take time,” 4/1/11, H.Jones 8
  9. 9. 9
  10. 10. IFRS Timeline2001 Formation of the IASC Foundation and the IASB2002 EU passes regulation to adopt IFRS for listed entities in 2005 FASB and IASB sign ‘The Norwalk Agreement’ in which they commit to reduce differences between US GAAP and IFRS, initiating the conversion efforts2005 Nearly 7,000 listed entities in Europe adopt IFRS2006 IASB announces ‘three years stable platform period’ - entities that have already adopted IFRS do not need to implement new IFRS until 20092007 SEC removes reconciliation requirement for non-US entities reporting under IFRS2008 SEC proposes roadmap for potential mandatory adoption of IFRS by US Filers2009 New SEC Chairman Mary Shapiro is reluctant to fully support roadmap to IFRS. In April, the Group of Twenty supports IFRS as one important step towards reforming the Financial System2010 SEC Work Plan2011 SEC – April Progress Report/July Roundtable 10
  11. 11. Why Global Accounting Standards?■ Global Accounting Standards improve the functioning of global capital markets by providing better information to investors and other users of financial statements Decrease the costs of preparing and interpreting financial statements Decrease cost of capital 11
  12. 12. IFRS forSmall and Medium Enterprises (SMEs/Private Entities) 12
  13. 13. BREAKING NEWSSME accounting standards response ‘bigger thanexpected’ (Accountancy Age, 5/3/11)■ Stakeholders were first invited to comment on the Accounting Standards Board’s (UK ASB) consultation document in October 2010■ “The Consultation” on IFRS for SMEs concluded on Saturday, April 30th with a response that exceeded expectations■ Respondents’ main concerns have focused on efforts to simplify FRSME (the draft IFRS for SMEs) by removing some of the options available under full IFRS■ The ASB board has begun working through the responses which will take until Fall with a Report to emerge in late 2011 13
  14. 14. Summary – IFRS for SMEs Issued July 2009 Culmination of a five year project Represents a stand alone set of standards Considerably shorter – only 230 pages 35 chapters 14
  15. 15. Definition of Users Small and medium-sized entities are entities that: (a) Do not have public accountability, and (b) Publish general purpose financial statements for external users. Examples of external users include owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies 15
  16. 16. 30+ Topics Financial statement presentation Four separate financial statements Footnotes Accounting policies Inventory Investment in associates and joint ventures PP&E Goodwill and intangibles Leases 16
  17. 17. 30+ Topics, Continued Reserves and contingencies Revenues Share-based payments Impairments Employee benefits Taxes Foreign currency translation Hyper inflation Related parties 17
  18. 18. Key Differences Between Full IFRS and IFRS for SMEs Jointly controlled entities - no proportional consolidation Investment properties – no cost method allowed PP&E / intangibles – no revaluation treatment Employee benefits – no corridor method allowed Intangibles – no capitalization of R&D costs Borrowing costs – expense only 18
  19. 19. Overview ofConvergence Process 19
  20. 20. MoU ProcessFirst MoU – February 2006 Second MoU – 2008 Third MoU – 2009 20
  21. 21. 21
  22. 22. SEC Initial Work Plan (February 2010) – Six Components1. Sufficient development and application of IFRS for the US domestic reporting system2. Independent Standard settings for the benefit of investor3. Investor understanding and education regarding IFRS4. Regulatory environment5. Impact of issuers6. Human capital readiness 22
  23. 23. Subsequent Series of Progress and Work Plan Reports 23
  24. 24. Recent Changes at the Top of theIASB and FASB and their Impact on the Timing of Convergence 24
  25. 25. Transitional Times Tommaso Padoa-Schioppa – IFRS Foundation Chairman • Dies of Heart Attack - Process for selecting a new Chairman will be published soon Sir David Tweedie – IASB Chairman • Hans Hoogervorst will succeed Sir David Tweedie on his retirement as chairman of the IASB – June 30, 2011 Robert Herz – FASB Chairman • Leslie Seidman named FASB Chairman. Her appointment comes as FASB deals with an unprecedented workload to complete priority convergence projects with the IASB by June 30th 25
  26. 26. 2010-2011New Pronouncements and Updates 26
  27. 27.  One new standard – IFRS 9 One revised standard – IAS 24 Amendments to IFRS that were issued as separate documents Amendments to IFRS issued in the second annual improvement projects Amendments to other IFRS resulting from those revised or amended standards Two new interpretations – IFRIC 18 and 19 27
  28. 28. New Pronouncements IFRS 9 Financial Instruments IAS 24 Related Party Disclosures IFRIC 18 Transfers of Assets from Customers IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 28
  29. 29. Amendments to IFRS Issued as Separate Documents Amendments to IFRS 7 Amendments to IFRIC 9 and IAS 39 Annual improvements Amendments to IFRS 2 Amendments to IFRS 1 Amendments to IAS 32 Amendments to IFRIC 14 Amendments to IAS 12 29
  30. 30. Status of Convergence Work 30
  31. 31. Overview of theNew Revenue Recognition Model 31
  32. 32. Work Plan for Remaining Priority Convergence ProjectsRevenue recognition: The IASB and FASB published a joint discussion paper in December 2008 The project is critical to both the FASB and the IASB. US GAAP has a wide range of very detailed industry-specific requirements The boards have been considering the feedback received from comment letters and the boards’ extensive outreach activities and are close to completing their redeliberations Draft of the new standard will be: a) Made generally available, via the boards’ websites, for interested parties to review; b) Used as the basis for outreach with parties that are most affected by the proposed new requirements; and c) Subjected to a detailed drafting review with selected parties, as part of the fatal flaw review process each board is required to undertake The board will consider feedback that they received from these steps to assess whether they can proceed to finalize the standards 32
  33. 33. Exposure DraftIssued in June 2010 33
  34. 34. Key Components : Revenue RecognitionStep 1 Identify the contracts with the customerStep 2 Identify the separate performance obligationsStep 3 Determine the transaction priceStep 4 Allocate the transaction price to the performance obligationsStep 5 Recognize revenue when a performance obligation is satisfied 34
  35. 35. Expanded Footnote Disclosures 35
  36. 36. 36
  37. 37. Work Plan for Remaining Priority Convergence ProjectsLeasing: The objective of this project is to improve financial reporting by ensuring that all assets and liabilities arising from lease contracts are recognized in the statement of financial position The boards published a joint exposure draft in August 2010 The boards have been considering the feedback received from comment letters and the boards’ extensive outreach activities They intend to develop a draft of the new standard, which will be: a) Made generally available, via the boards’ websites, for interested parties to review; b) Used as the basis for outreach with parties that are most affected by the proposed new requirements; and c) Subjected to a detailed drafting review with selected parties, as part of the fatal flaw review process each board is required to undertake 37
  38. 38. Work Plan for Remaining Priority Convergence ProjectsFinancial instruments: Efforts to improve our requirements and to reach a common solution have been complicated by differing imperatives that pushed our respective development timetables out of alignment Strategy for addressing those differences remains the same – each board has been publishing its proposals while also soliciting comment on those of the other board, as a way of giving interested parties the opportunity to compare and assess the relative merits of both boards’ proposals 38
  39. 39. Top 10 Industrialized countries and their Use of IFRS and How they Have Implemented the New Standards 39
  40. 40. Understanding theDifferences between “Adoption” and “Adaptation” (=Adaption?) 40
  41. 41. China Rules for Listed FilingsIs IFRS required for all listed companies? No, however CAS (Chinese Accounting Standards) have “somewhat converged” with IFRS. It is not a direct translation of IFRS and several differences remain between CAS and IFRS. The Ministry of Finance has plans to eliminate those differences. Version of IFRS is not applicable. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? IFRS or IFRS for SMEs are prohibited. Basically “stuck” in the 2006 version of IFRS. 41 IFRS adoption by country – www.pwc.com
  42. 42. India Rules for Listed FilingsIs IFRS required for all listed companies? No, Financial Statements must be prepared in accordance with Indian GAAP. Version of IFRS is not applicable. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? IFRS and IFRS for SMEs are prohibited. Financial Statements must be prepared in accordance with Indian GAAP. Failed to meet the March, 2011 deadline. 42 IFRS adoption by country – www.pwc.com
  43. 43. United Kingdom Rules for Listed FilingsIs IFRS required for all listed companies? Required for consolidated financial statements. Permitted for standalone/separate financial statements. IFRS as adopted by EU. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? Permitted for standalone/separate financial statements. IFRS for SMEs is prohibited. Parent companies can choose to apply IFRS or UK GAAP. 43 IFRS adoption by country – www.pwc.com
  44. 44. Germany Rules for Listed FilingsIs IFRS required for all listed companies? Required for all consolidated financial statements. IFRS as adopted by EU. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? Permitted, for standalone financial statements as long as additionally, local GAAP (HGB) consolidated financial statements are prepared and filed. IFRS for SMEs is prohibited. 44 IFRS adoption by country – www.pwc.com
  45. 45. France Rules for Listed FilingsIs IFRS required for all listed companies? Required for consolidated financial statements. IFRS as adopted by EU.Are subsidiaries of foreign companies or foreign companies listed onlocal exchanges subject to different rules? Yes. Non-EU companies can apply Japanese, US or Canadian GAAP. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? IFRS and IFRS for SMEs are prohibited. 45 IFRS adoption by country – www.pwc.com
  46. 46. Australia Rules for Listed FilingsIs IFRS required for all listed companies? Required for consolidated financial statements. There is no longer a requirement to prepare separate standalone financial statements for the parent entity. IFRS as adopted using the Australian version of IFRS. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? IFRS is required for most consolidated and standalone/separate financial statements. IFRS for SMEs is prohibited. 46 IFRS adoption by country – www.pwc.com
  47. 47. New Zealand Rules for Listed FilingsIs IFRS required for all listed companies? Required for consolidated and standalone/separate financial statements. Like Australia, IFRS as adopted locally. All requirements of IFRS as published by IASB are retained, but also some additional requirements are included in New Zealand Equivalents to IFRS (NZ IFRS) (mainly in relation to public benefit entities, so these would not be relevant for listed entities). Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? NZ IFRS is required for some companies and IFRS for SMEs is prohibited. 47 IFRS adoption by country – www.pwc.com
  48. 48. Japan Rules for Listed FilingsIs IFRS required for all listed companies? Listed companies which meet certain requirements ("Specified Companies") are permitted to use IFRS for their consolidated financial statements ending on or after March 31, 2010. IFRS as adopted by the Financial Services Agency ("Designated IFRS’"). The Commissioner of the Financial Services Agency of Japan will designate those IFRSs published by the IASB which are recognized as having been approved and issued through fair and reasonable due process and are expected to be considered as being fair and appropriate financial reporting standards from the viewpoint of investor protection and market integrity in Japan. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? Companies which file their consolidated financial statements under the Companies Act are permitted to use IFRS for the consolidated financial statements ending on or after March 31, 2010, if they are Specified Companies. 48 IFRS adoption by country – www.pwc.com
  49. 49. Spain Rules for Listed FilingsIs IFRS required for all listed companies? IFRS is required for consolidated financial statements for listed companies (other than financial institutions). Financial institutions must apply a local accounting plan that complies with IFRS although it is not called IFRS. Main differences are the elimination of the “non preferable accounting policies” when there are alternatives (i.e. the fair value model for IAS16 items is not permitted). IFRS as adopted by the EU. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? IFRS is permitted for consolidated financial statements. All other companies must use New Spanish GAAP (effective January 1, 2008), which is essentially IFRS based with some differences. IFRS for SMEs is prohibited. 49 IFRS adoption by country – www.pwc.com
  50. 50. South Korea Rules for Listed FilingsIs IFRS required for all listed companies? Adoption of IFRS is required for all listed companies and certain unlisted financial institutions from 2011. IFRS as published by IASB and translated to Korean language word-for-word. Rules for Statutory FilingsIs IFRS or IFRS for SMEs required, permitted or prohibited? IFRS is permitted from 2009 for all statutory filers. In 2011, IFRS is a requirement for all listed statutory filers and certain unlisted financial institutions. IFRS for SME is prohibited for statutory filings. 50 IFRS adoption by country – www.pwc.com
  51. 51. “Deep Dive” into theProgress Report (October 29, 2010) on the SEC Work Plan andPractical Issues Surrounding IFRS Adoption 51
  52. 52. Progress Report on SEC Work Plan October 29, 2010 52
  53. 53. SEC “Preliminary Observations” (October 2011)Approaches to Incorporate IFRS into a Jurisdiction’sFinancial Reporting System 1. Use IFRS as issued by IASB Very few follow! 2. Use IFRS after some form of national incorporation process Leading to... Convergence approach and/or Endorsement approach 53
  54. 54. Convergence ApproachChina – Best Example Moving closer Not full incorporated Follow “ASBEs” – Accounting Standards for Business Enterprises (Set by the Accounting Law of the PRC) Adopted 2006 standards in 2007 September 2009 – new Roadmap (exposure draft) In state of “lull” 54
  55. 55. Endorsement Approach (Vast Majority Follow this Approach)  Degree of deviation varies by jurisdiction  Translated into local language (not English)  Modification based on “country specific issues”  EU – largest example Australia – 2nd largest example2005 Must follow IAS adopted by European Commission for listed companies2006 ‐ New IFRS must go through multiple steps before its authorized by the Present “EFRAG” (European Financial Reporting Advisory Group)  and then “SARG” (Standards Advice Review Group) and then.. “ARC” (Accounting Regulatory Commission) and finally... the European Parliament has three months to oppose endorsement If not opposed                      published in the Office Journal of the EU 55
  56. 56. Other Critical SEC Observations and Concerns Oversight of the IFRS Foundation? Composition of the IFRS Foundation and IASB Significant underfunding of the IFRS Foundation • Operating deficits of $4 million • 75% of the countries do not help fund • United States accounts for about 25% of total funding Many issues to resolve!!! 56
  57. 57. Understanding the New Term “Condorsement”(Convergence + Endorsement) and What It Means to You! 57
  58. 58. What to Expect from the SEC in the Next 30-60 Days 58
  59. 59. SEC will sponsor a Roundtable in July to discuss benefits/challenges in potentially incorporating IFRS into the financial reporting system for US issuers The July 7 event will feature three panels representing – investors, smaller public companies, and regulatorsSEC welcomes feedback on the topics to address at the roundtable and suggestions for potential roundtable participants 59
  60. 60. SEC sent a letter to the Center for Audit Quality –acknowledging that it would be impossible for foreign private issuers, or those who file their financial statements with the SEC following IFRS, to file in XBRL following SEC rulesOn March 25, IFRS Foundation finalized the 2011 IFRS Taxonomy, however the SEC has not yet approved that taxonomy 60
  61. 61. IFRS Foundation to Add Common-Practice Tags to IFRS Taxonomy 61
  62. 62. What You and Your Team Should Be Doing Now 62
  63. 63. PWC SurveyApril 2011 63
  64. 64. 642011 US GAAP Convergence & IFRS Survey, 4/11/11
  65. 65. Some 43% respondents said the pace is too fast. 15% thought the pace was too slow. 65 2011 US GAAP Convergence & IFRS Survey, 4/11/11
  66. 66. Predictive Timeline for 2011-2015? 66
  67. 67. 67
  68. 68. 68
  69. 69. 69
  70. 70. 70
  71. 71. 71
  72. 72. 72
  73. 73. Personal Experience in 2011Teaching IFRS to the Chinese at the MBA Level at Shanghai University of Finance and Economics 73
  74. 74. Thank You Stephen G. Austin, MBA, CPAsteve.austin@swensonadvisors.com www.SwensonAdvisors.com www.swentrack.com www.swensonforensic.com 74

×