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Session 5 02172012 ifrs update stark presentation


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Session 5 02172012 ifrs update stark presentation

  1. 1. 2/1/2012 Dec. 5, 2011: SEC Chief Accountant Derrick B Stark, CPA indicates the SEC staff February 17, 2012 is months from completion of a final report for the commission to make a decision on IFRS. 2 1. FASB|IASB Complete Work on Memorandum of Understanding The number of U.S. public Projects (“MOU”) companies waiting on the SEC a. Revenue Recognition to support adoption before b. Leasing c. Financial Investments implementing IFRS statement d. Insurance preparation. 42. Incorporate IFRS into U.S. GAAP a. IASB Handles New Projects b. FASB Consults in Development and Evaluates FASB, IASB, Chiefs “Suitability” for U.S. GAAP (Name Retained) Agree New3. FASB Evaluates Remaining Differences Between U.S. GAAP and IFRS. Convergence Model is Needed. - Journal of Accounting, 12/6/2011 5 6 1
  2. 2. 2/1/2012 8• IFRS/US GAAP Comparison - reporting/publications/ifrs-and-us-gaap- similarities-and-differences.jhtml• IFRS Foundation –• Financial Accounting Standards Board –• AICPA IFRS Resources – 12 2
  3. 3. 2/1/2012 • Stark, Derrick. “Why IFRS Matters Now” SCACPA CPA Report. 2nd Quarter, 2011. • Stark, Derrick. “Getting from Point GAAP to Point IFRS” SCACPA CPA Report. 3rd Quarter, 2011. 2011 Derrick B Stark, CPA Derrick B Stark CPA • Stark, Derrick. “Will the United States Ever MiraVista, LLC Accept IFRS?” SCACPA CPA Report. 4th 803.462.9959 x 200 Quarter, 2011. Reprinted with permission from The CPA Report, published by the South Carolina Association of CPAs 13These materials and links to other sources are provided  for informational purposes only and are not intended  to be and should not be construed as legal advice.  MiraVISTA does not guarantee or warrant that the  MiraVISTA does not guarantee or warrant that the materials are without error or present a complete  explanation of all of the subject material. Laws and procedures change frequently and are subject  to differing interpretations.  Content and information is  subject to change without notice. 3
  4. 4. Will theUNITED STATESEver Accept IFRS?by Derrick B. Stark, CPASCACPA member since 1996O ver 120 countries currently IFRS and rules-based U.S. GAAP is In an article co-authored by University permit or require financial narrowing. While Grayson-Caprio is of South Carolina professor Timothy statement reporting using a fan of principles-based standards, Doupnik, research suggests that,International Financial Reporting she acknowledges, "They [IFRS] are even in those countries that haveStandards (IFRS). Many more are changing to become more rules-based." implemented IFRS, cultural differencescurrently developing or implementing among nations can lead to materiallyIFRS adoption. While IFRS ma ers now In addition to more specifics in IFRS, different interpretations of the standardsto U.S. companies that have foreign broadly accepted interpretations (h p://www.journalofaccountancy.reporting requirements, the United by practitioners will aid preserved com/Issues/2009/Feb/States is largely seen as a major hold comparability. "Companies establish IFRSBeyondtheStandards). Words likeout in the global acceptance of the internal policies within the [IFRS] "probable" have very different meaningsinternational standards. According to principle, and the companies have to be to preparers based on national culturethe latest AICPA IFRS Readiness Survey, consistent from year to year," according and values, and as such, recognition and76 percent of public companies are to Grayson-Caprio. disclosure will vary significantly basedwaiting for the SEC to support adoption on locale regardless of the commonbefore implementing IFRS statement Many of those internal policies naturally standards. Perhaps, then, a single setpreparation and many have not yet find their genesis in the copious of high quality accounting standardsacquired the expertise they will need to amounts of U.S. GAAP literature and does not necessarily provide the globaldo so. All of this begs the question, will historical practice. As a result, the comparability we pursue.the US ever accept IFRS? professional judgment of the internal policy drafters, financial statement The destiny of IFRS in the United StatesAt a glance, IFRS, a principles-based preparers, and auditors is expected may be that of soccer. Sure it has aset of standards, seems to contradict to smack of U.S. GAAP except for loyal following in America among thosethe revered objective of comparability the places where there are direct with a reason to participate, but Hankbaked into U.S. GAAP. The flexibility contradictions. Thus, comparability Williams, Jr. may never wail, "Are younecessary to foster broad acceptance between companies is likely preserved ready for" nleaves open the door for wider at a practical level in the United Statesinterpretation and varied results. even under IFRS. Derrick B. Stark, CPA, is managingAdopting IFRS, moreover, seems like an member of ClaraVista LLC, aabout face to the post-Enron deluge of Assuming that IFRS does gain some reimbursement and consultingspecifics in our rules-based system. traction by the authoritative accounting firm serving home medical equipment suppliers throughout bodies here, one cannot help but the United States. Derrick’s areas ofTerry Grayson-Caprio, a partner at wonder how much comparability expertise include data analytics andKPMG LLP in Greenville, thinks the abroad is likely given contradiction application development. Derrick can be reached atgap between the principles-based between flexibility and comparability. 557-4814 | South Carolina CPA Report 19