This is a presentation I gave ata CPE event in Raleigh for accountants. With the US looking like it will go to IFRS, we have to ask..... is it worth it?

1. Laney Dale
Managing Partner
NuOpus
IS IFRS WORTH THE COST

2. Agenda
 Why IFRS?
 Does It Solve a Problem?
 The Estimated Cost of Compliance
 Pros
 Cons
 Is It Worth It

3. Why IFRS?
 Harmonization
 More accurate reporting
 Lower Cost of capital
 Most of the world uses it

4. Does It Solve a Problem?
 Is there a problem?
 A global economy
 Global Markets
 Companies that report on different parts of
the globe
US must be competitive
 If it ain’t broke don’t fix it

5. The Estimated Cost of
Compliance
 SOX all over again !
 Early Adopters
• 110 Companies
• $32 Million

6. Pros
 Simplified international reporting
 Comparability for foreign investors
 IFRS will save money. As more companies go
global, they won’t have to spend money
doing two sets of books.
 Being principles-based, IFRS allows more
leeway in how companies can portray their
financial performance.
 IFRS will make cross-border investments
easier.

7. Cons
 Cost
 Not many U.S. business schools teach IFRS.
 Inconsistencies in IFRS such as how research
costs are explained and its tendency to allow
higher earnings statements need to be
worked out.
 Small and middle-sized firms may be unfairly
hit with extra costs just as they were with the
Sarbanes-Oxley Act.

8. Is it Worth it?