2nd Annual Conference on
Teaching and Learning in Accounting (CTLA)
                    August 1-2, 2009
                 ...
Introduction To IFRS
The Vision Behind IFRS
          Robert Herz, Chairman FASB
    “If you were to look back from the year 2020
 to the year ...
Norbert Tschakert   4
IFRS Are Already A Reality In The U.S.

• New Standard ‘IFRS for SMEs’ enables private entities in
  the U.S. to use IFRS ...
IFRS - Potential Benefits
• Enhances worldwide comparability for investors

• Results in a more efficient capital allocati...
There Is A Market Demand To Teach IFRS




                Norbert Tschakert        7
IFRS Education Is A Prerequisite For Adoption

• One of the seven Milestones in the SEC Roadmap to IFRS
  specifically add...
IFRS Increasingly Relevant For
            AACSB Accreditation
Standard 15

“Contents of the learning experiences provided...
IFRS Increasingly Relevant For
         AACSB Accreditation (Cont’d)
Standard 37

“The curriculum management process will ...
IFRS Event Information

Wednesday, August 5th 2009 at 2 p.m.

Teaching Accounting in Time of Harmonization of
Financial St...
IFRS at San Diego State University



 Leadership for the Global Marketplace
Historical Development

The course “International Accounting” has long been part of
the curriculum at SDSU. Traditionally ...
Infusion Approach Or
                Standalone IFRS Course?
First question to decide at the outset of developing IFRS Cur...
Strong Focus On
             Framework And Principles
At the moment the goal is to
- get students ready for the job market...
Bringing The Structure Of IFRS
                Into The Classroom
An IFRS is typically made up of some or all of the follo...
Challenge And Involve Students With
         IFRS Group Presentations
Examples:
SEC Roadmap
Discussion Papers (www.iasb.or...
Guest Speakers
               Liven Up The Classroom
IFRS Guest Speakers from countries that have applied IFRS for years
a...
CTLA IFRS Panel Presentation

          Dr. John L. Haverty
        St. Joseph’s University
       Philadelphia, PA 19131
...
The PWC Email
Dear Professor:

     Each year, PricewaterhouseCoopers LLP
  employs several thousand new campus hires and
...
The PWC Email
   PwC believes it is important for our new hires
to have sufficient knowledge and skills about IFRS
to tran...
The PWC Email
Sophomores interviewing for summer
programs and internships and who have had
at least one term of accounting...
The PWC Email
Juniors and above interviewing for internships
or full time positions should have a full
awareness of IFRS. ...
IFRS at St. Joseph’s University
• No standalone IFRS course at this time
• Across-the-curriculum approach
• Course by cour...
Financial Accounting Course
• Faculty stretched thin
• Textbook driven—we depend on IFRS content in
  the textbook
• Gener...
Managerial Accounting Course
• Faculty stretched thin
• Textbook driven—we depend on IFRS content
  in the textbook
• Gene...
Intermediate Accounting Sequence
• Most crucial course
• Reasonable material starting to appear in the
  textbooks
• Using...
Advanced Accounting Course
• The title of the proposal, "The StarWorld Ledger
  System: Curricular Integration of Internat...
International Accounting Course
• Elective for accounting majors
• Required for international business majors
    – No int...
“Global Accounting: IASB and IFRS”
  at Roosevelt University in Chicago


                    Mark A. Holtzblatt, Ph.D., C...
Course Design Goal:
  To Create an “Enlivened” IFRS Class
________________________________________________________________...
Considered the IFRS Certificate Programs
         of ACCA and ICAEW




                                      3
ACCA and ICAEW evaluation:
___________________________
Cost prohibitive: $270 to $600 per student

Not as accounting inten...
5
6
7
8
IFRS e-Learning Modules:
_______________________________________________________________________________________




Cost...
e- IFRS by the IASB
       __________________________________________________________



• Students become familiar with r...
11
12
13
IFRS Books in Various Nations




 CANADA    AUSTRALIA     UK
  (2009)     (2007)    (2008)
Selected Blackboard.com Weekly
Lessons from the course

Global Accounting: IASB and IFRS


                              15
16
17
18
19
IFRS Cyber-Guest Lecturers
Sir David Tweedie, Chairman of the IASB
        Toronto, Canada in 2008




                                      21
An Emerging IFRS
  Pedagogical Resource
 ______________________________________________

 IFRS Webcasts and Videos
 A Sh...
Sources of IFRS
             Webcasts & Videos
 __________________________________________________________________________...
26
28
29
PWC.tv
33
IFRS.com video clips by the AICPA
34
OTHER SOURCES OF IFRS VIDEOS

 YOUTUBE.COM



 BLINKX.COM
Introductory Accounting, Finance
     and International Business Courses
_________________________________________________...
Advanced Undergrad and Grad Classes
______________________________________________________________________________________...
New “Stand-Alone” IFRS Courses
_______________________________________________________________________________________



...
Benefits for Professors

 Quality IFRS Speakers are Accessible
 Just Need Requisite Equipment and Internet

Benefits for...
CONCLUDING REMARKS:
Tony Conti, PricewaterhouseCoopers




                                     41
AAA CTLA 2009 IFRS Panel Presentation in New York
AAA CTLA 2009 IFRS Panel Presentation in New York
AAA CTLA 2009 IFRS Panel Presentation in New York
AAA CTLA 2009 IFRS Panel Presentation in New York
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AAA CTLA 2009 IFRS Panel Presentation in New York

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Presentation on IFRS Education at the 2009 AAA CTLA Conference in New York togeter with Professor Mark Holtzblatt (Roosevelt University) and Professor John Haverty (Saint Joseph\'s University)

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AAA CTLA 2009 IFRS Panel Presentation in New York

  1. 1. 2nd Annual Conference on Teaching and Learning in Accounting (CTLA) August 1-2, 2009 New York City, NY Panel on IFRS Norbert Tschakert Charles W. Lamden School of Accountancy San Diego State University ntschake@mail.sdsu.edu John Haverty Haub School of Business Saint Joseph’s University john.haverty@sju.edu Mark Holtzblatt Walter E. Heller College of Business Administration Roosevelt University MarkH@roosevelt.edu
  2. 2. Introduction To IFRS
  3. 3. The Vision Behind IFRS Robert Herz, Chairman FASB “If you were to look back from the year 2020 to the year 2001 you would say ‘What chaos!’ and ‘What inefficient capital markets!’ People will look back and say, ‘How did those people get along then?’ It will be like we now say, ‘How did people get along without cell phones?’ When you are in the middle of it, it is always difficult. It is important just to keep on towards that end goal.” KPMG: International Financial Reporting Standards: Views on a financial reporting revolution, 2006, p. 23, www.kpmg.com Norbert Tschakert 3
  4. 4. Norbert Tschakert 4
  5. 5. IFRS Are Already A Reality In The U.S. • New Standard ‘IFRS for SMEs’ enables private entities in the U.S. to use IFRS (2009) • IFRS are used by SEC foreign registrants without reconciliation to US GAAP (2007) • IFRS are used by foreign subsidiaries of U.S. - based multi-nationals • IFRS are used by U.S. subsidiaries of non-U.S. multi- nationals for the purpose of consolidation Norbert Tschakert 5
  6. 6. IFRS - Potential Benefits • Enhances worldwide comparability for investors • Results in a more efficient capital allocation • Supports raising capital overseas • Easier consolidation (one set of books) • Easier cross-border acquisitions • Understand the financial statements of overseas suppliers, customers, subsidiaries Norbert Tschakert 6
  7. 7. There Is A Market Demand To Teach IFRS Norbert Tschakert 7
  8. 8. IFRS Education Is A Prerequisite For Adoption • One of the seven Milestones in the SEC Roadmap to IFRS specifically addresses ‘IFRS Education’ as a prerequisite to adopting IFRS in the U.S. The SEC will consider the state of preparedness of U.S. issuers, auditors, users and educators. • IFRS cannot be ignored as soon as it is part of the CPA Exam (AICPA already working on including IFRS into CPA Exam. IFRS expected to be part of CPA Exam in 2011) • Learn from EU experience (Shortage in IFRS Workforce after adoption of IFRS) • Enable your graduates to have a worldwide career in Accounting and to be competitive in a worldwide economy Norbert Tschakert 8
  9. 9. IFRS Increasingly Relevant For AACSB Accreditation Standard 15 “Contents of the learning experiences provided by programs should be both current and relevant to needs of business and management positions. This implies, for example, that present day curricula will prepare graduates to operate in a business environment that is global in scope. Graduates should be prepared to interact with persons from other cultures and to manage in circumstances where business practices and social conventions are different than the graduate’s native country.” Norbert Tschakert 9
  10. 10. IFRS Increasingly Relevant For AACSB Accreditation (Cont’d) Standard 37 “The curriculum management process will result in degree programs that include learning experiences in … International accounting issues and practices including roles and responsibilities played by accountants within a global context.” Norbert Tschakert 10
  11. 11. IFRS Event Information Wednesday, August 5th 2009 at 2 p.m. Teaching Accounting in Time of Harmonization of Financial Standards Dr. Gail Naughton, Dean of the College of Business Administration at San Diego State University, Industry Committee of AACSB, a member of the Board of Directors of AACSB International. Presentation: AACSB's approach to globalization. Norbert Tschakert 11
  12. 12. IFRS at San Diego State University Leadership for the Global Marketplace
  13. 13. Historical Development The course “International Accounting” has long been part of the curriculum at SDSU. Traditionally it intended to create an awareness for cultural differences and to illustrate different accounting treatments around the world. As the harmonization among standards and the convergence project between US GAAP and IFRS proceeded over the years, this course was over time transformed to focus more on IFRS and its original scope was limited to the introduction of this course. Norbert Tschakert 13
  14. 14. Infusion Approach Or Standalone IFRS Course? First question to decide at the outset of developing IFRS Curriculum SDSU maintains an integrative accounting curriculum and chose to do both: Every course includes comparisons to IFRS and in addition the “Graduate Seminar in International Accounting” provides an in-depth knowledge of IFRS. Starting next year, SDSU will offer two IFRS classes, one on a rather technical level and one on an introductory level. Advantages: All members of the Faculty have to be familiar with introducing IFRS All students will have a minimum understanding of IFRS Students have the option to gain a good understanding of IFRS Norbert Tschakert 14
  15. 15. Strong Focus On Framework And Principles At the moment the goal is to - get students ready for the job market - enable students to research IFRS topics on their own - to ensure a basic understanding of IFRS. An initial limited scope facilitates the implementation in the classroom. The scope of the class can be expanded as IFRS become more relevant in the U.S. Norbert Tschakert 15
  16. 16. Bringing The Structure Of IFRS Into The Classroom An IFRS is typically made up of some or all of the following sections: - Introduction (IN) Use the Structure of the - Objectives Standard for the Structure - Scope of your Lecture. Work with - Definition of terms used the Original Text. - Body of the standard (core text) - Effective date and transitional provisions - Application Guidance (AG) - Approval by IASB - Basis for Conclusion (BC) - Dissenting Opinions by IASB members - Implementation Guidance (IG) - Illustrative Examples (IE) Norbert Tschakert 16
  17. 17. Challenge And Involve Students With IFRS Group Presentations Examples: SEC Roadmap Discussion Papers (www.iasb.org) Exposure Drafts (www.iasb.org) Steps in Adopting IFRS Performing a GAP Analysis Accounting Scandals under US-GAAP and IFRS IFRS in Developing Countries IFRS for SMEs Norbert Tschakert 17
  18. 18. Guest Speakers Liven Up The Classroom IFRS Guest Speakers from countries that have applied IFRS for years are a great resource for your class. At SDSU: - Manager from the IASB (SDSU Graduate) from London reported on IASB and political influence via Internet - Presenter from GAAPSeminars calculated IFRS Examples If you do not have access to a knowledgeable IFRS guest speaker, consider using ‘IFRS Cyber-Guest Lecturers’ (-> Mark Holtzblatt, Roosevelt University) Norbert Tschakert 18
  19. 19. CTLA IFRS Panel Presentation Dr. John L. Haverty St. Joseph’s University Philadelphia, PA 19131 jhaverty@sju.edu CTLA IFRS Panel John L. Haverty St. Joseph's University
  20. 20. The PWC Email Dear Professor: Each year, PricewaterhouseCoopers LLP employs several thousand new campus hires and interns. Candidates for these positions are evaluated, in part, on behavioral interviews that focus on specific competencies that are essential to success in the Firm. One of these is acquiring and applying technical and professional skills and knowledge. CTLA IFRS Panel John L. Haverty St. Joseph's University
  21. 21. The PWC Email PwC believes it is important for our new hires to have sufficient knowledge and skills about IFRS to transition easily into our practice. Therefore, we will include IFRS in the basis for making decisions about an applicant's level of technical and professional skills and knowledge. Starting in Fall 2009, we will expect that applicants will have used our learning opportunities or other means so that: CTLA IFRS Panel John L. Haverty St. Joseph's University
  22. 22. The PWC Email Sophomores interviewing for summer programs and internships and who have had at least one term of accounting should have a pre-awareness of IFRS. This is the ability to Define what IFRS stands for Articulate the general uses of US GAAP and IFRS Recognize that IFRS will be important in the future CTLA IFRS Panel John L. Haverty St. Joseph's University
  23. 23. The PWC Email Juniors and above interviewing for internships or full time positions should have a full awareness of IFRS. This is the ability to Do all pre-awareness tasks Articulate the sources of US GAAP and IFRS Describe an example of IFRS financial statements Identify an example of a difference between US GAAP and IFRS Explain the current status and likely timetable for adoption of IFRS CTLA IFRS Panel John L. Haverty St. Joseph's University
  24. 24. IFRS at St. Joseph’s University • No standalone IFRS course at this time • Across-the-curriculum approach • Course by course – Financial Accounting – Managerial Accounting – Intermediate Accounting Sequence – Advanced Accounting Course – International Accounting Course (elective for accounting majors, required for international business majors) CTLA IFRS Panel John L. Haverty St. Joseph's University
  25. 25. Financial Accounting Course • Faculty stretched thin • Textbook driven—we depend on IFRS content in the textbook • General globalization approach • We are inserting an Assurance of Learning objective tying into the PWC email • Faculty have not reached consensus yet – Not enough IFRS here—for non-accounting majors this is their ONLY exposure to IFRS – Too difficult to make substantial changes outside of what is in the textbooks CTLA IFRS Panel John L. Haverty St. Joseph's University
  26. 26. Managerial Accounting Course • Faculty stretched thin • Textbook driven—we depend on IFRS content in the textbook • General globalization approach – Transfer pricing is a great international topic – Plant valuation affects the cost of a product (IFRS options on plant valuation) CTLA IFRS Panel John L. Haverty St. Joseph's University
  27. 27. Intermediate Accounting Sequence • Most crucial course • Reasonable material starting to appear in the textbooks • Using the Virginia Tech Materials (available in AAA Commons) CTLA IFRS Panel John L. Haverty St. Joseph's University
  28. 28. Advanced Accounting Course • The title of the proposal, "The StarWorld Ledger System: Curricular Integration of International Financial Reporting Standards with a Computerized Accounting Simulation", will take the principles based approach required by IFRS, and simulate a series of transactions into a practice set for use in the classroom. This model will outline the differences between the currently GAAP standards and compare it to the emerging IFRS requirements. The practice set will be delivered in an integrated approach between SAP and Excel, and will be developed in a collaborative effort among the department faculty and students. CTLA IFRS Panel John L. Haverty St. Joseph's University
  29. 29. International Accounting Course • Elective for accounting majors • Required for international business majors – No intermediate as prerequisite • Two-audience problem • Specific IFRS differences – Property, plant and equipment – Research and development • Use 20-F reconciliations and have the students “discover” differences – Unfortunately these are no longer required, but past ones are available • Use a case study where there is multiple reporting – China Eastern Airlines (Haverty, IAE, 22,4, 2007) CTLA IFRS Panel John L. Haverty St. Joseph's University
  30. 30. “Global Accounting: IASB and IFRS” at Roosevelt University in Chicago Mark A. Holtzblatt, Ph.D., CPA Associate Professor of Accounting The Heller College of Business Roosevelt University Chicago, Illinois 2nd Annual Conference on Teaching and Learning in Accounting (CTLA), Aug 1 and 2 , 2009, New York City, NY
  31. 31. Course Design Goal: To Create an “Enlivened” IFRS Class ___________________________________________________________________________________________  Online Interactivity  Use of IFRS Web resources  Use of IFRS Webcasts and Videos as a supplementary pedagogical resource. 2
  32. 32. Considered the IFRS Certificate Programs of ACCA and ICAEW 3
  33. 33. ACCA and ICAEW evaluation: ___________________________ Cost prohibitive: $270 to $600 per student Not as accounting intensive as desired… designed for Finance professionals also Chose the Deloitte IFRS e-Learning Modules 4
  34. 34. 5
  35. 35. 6
  36. 36. 7
  37. 37. 8
  38. 38. IFRS e-Learning Modules: _______________________________________________________________________________________ Cost is free for a $4 million interactive online training program  Continuously updated by Deloitte  Students are challenged  Realistic cases - clients, co-workers, emails, faxes, phone calls, financials, deadlines etc. 9
  39. 39. e- IFRS by the IASB __________________________________________________________ • Students become familiar with researching the actual IFRS standards • Low cost: $20 for what normally costs $400 10
  40. 40. 11
  41. 41. 12
  42. 42. 13
  43. 43. IFRS Books in Various Nations CANADA AUSTRALIA UK (2009) (2007) (2008)
  44. 44. Selected Blackboard.com Weekly Lessons from the course Global Accounting: IASB and IFRS 15
  45. 45. 16
  46. 46. 17
  47. 47. 18
  48. 48. 19
  49. 49. IFRS Cyber-Guest Lecturers
  50. 50. Sir David Tweedie, Chairman of the IASB Toronto, Canada in 2008 21
  51. 51. An Emerging IFRS Pedagogical Resource ______________________________________________  IFRS Webcasts and Videos  A Sharp Acceleration Since 2008  The Entire Collection is Impressive  Valuable Supplements for teaching 23
  52. 52. Sources of IFRS Webcasts & Videos ________________________________________________________________________________________________________________________________________  Global Accounting Firms  Professional Institutes (AICPA,CICA,ICAI)  Educational Institutions (Pace University)  Youtube.com  Blinkx.com 24
  53. 53. 26
  54. 54. 28
  55. 55. 29
  56. 56. PWC.tv
  57. 57. 33 IFRS.com video clips by the AICPA
  58. 58. 34
  59. 59. OTHER SOURCES OF IFRS VIDEOS  YOUTUBE.COM  BLINKX.COM
  60. 60. Introductory Accounting, Finance and International Business Courses ____________________________________________________________________________________  Short video clips are ideal  Raises student awareness of IFRS  PWC.tv – Partners, Managers, Professors  IFRS.com – Practitioners, Regulators
  61. 61. Advanced Undergrad and Grad Classes __________________________________________________________________________________________  Short video clips for introduction  IFRS Principle webcasts as supplements (i.e., Inventory, PP & E, Intangibles)  Conferences (Academic and Professional) - Pace University IFRS Conference - PWC Executive Conferences - KPMG- Sir David Tweedie Interview - Canadian Conferences
  62. 62. New “Stand-Alone” IFRS Courses _______________________________________________________________________________________ Summer/ 2009 IFRS Courses at Roosevelt:  Entire spectrum of IFRS webcasts & videos  Deloitte e-Learning Modules  IASB e-IFRS  Wiley Book: IFRS Primer
  63. 63. Benefits for Professors  Quality IFRS Speakers are Accessible  Just Need Requisite Equipment and Internet Benefits for Students  Respond to innovative technology applications  Heightened interest in experts speaking  Able to watch webcasts & videos repeatedly 40
  64. 64. CONCLUDING REMARKS: Tony Conti, PricewaterhouseCoopers 41

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