The document discusses the global convergence of accounting standards, specifically the increasing adoption of International Financial Reporting Standards (IFRS) globally. It notes that over 100 countries now require or permit the use of IFRS. The document also discusses differences between IFRS and US GAAP, such as IFRS being more principles-based while US GAAP is more rules-based. The SEC roadmap for potential future adoption of IFRS for US public companies by 2016 is also summarized.
When to Consolidate and When not to?
Acquisition Method
Inter-company Entries
Consolidation Working Paper
Combined Financial Statements and how do they differ from Consolidated Financial Statements
Adjustments in Detail
When to Consolidate and When not to?
Acquisition Method
Inter-company Entries
Consolidation Working Paper
Combined Financial Statements and how do they differ from Consolidated Financial Statements
Adjustments in Detail
IFRS 10 set the rules and principles for preparing Consolidated Financial Statements when an entity owns one or more other entities. It also includes the history and background of the IFRS 10 that how it came into existence.
IFRS 10 set the rules and principles for preparing Consolidated Financial Statements when an entity owns one or more other entities. It also includes the history and background of the IFRS 10 that how it came into existence.
International Financial Reporting Standards- IFRSDipu Thomas joy
International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries
En el marco del congreso internacional de economía social celebrado en EOI Sevilla y en colaboración con el Goldsmiths college, Rob Bryer enseña que los International Financial Reportings Standards, irfs, son amenazas para las cooperativas.
28_05_2010
Impacts of IFRS Adoption on Financial Statements: Issues & Challenges - Chartered Institute of Bankers of Nigeria (CIBN) workshop on IFRS Abuja - 28 - 29th July , 2016
Used for MBA professional accounting class room presentation and it includes FASB rules and forex currency dealings details for purchase and sale of goods and services with foreign party.
Piggyback on IFRS Demands to Enable Financial Consolidationdcd2z
Your company has decided to be an SAP shop, but you still
have many disparate systems. You’re still using an old version
of Hyperion for financial consolidation. You see IFRS demands
in your operations globally. This session will describe a strategy
to piggyback on IFRS demands to leverage SAP consolidation
tools for financial and management consolidations, while
integrating enterprise performance management and a flexible
enterprise reference architecture to add real value to your
organization.
International Accounting is the international aspect of accounting encompassing accounting principles and reporting practices in different countries, foreign currency and exchange and the accounting of multinational companies and their subsidiaries.
IAS / IFRS Basic understanding
Learning outcomes
(1) What is IAS?
(2) What are International Financial Reporting Standards (IFRS)?
(3) Understanding International Financial Reporting Standards (IFRS)
(4) From IAS to IFRS
(5) GAAP vs IFRS vs IAS
(6) Standard IFRS Requirements
(7) IFRS vs. American Standards
(8) Composition of IFRS
(9) History of IFRS
(10) Combination of Accounting Standards
(11) List of International Financial Reporting Standards (IFRS)
(12) List of International Accounting Standards (IAS)
(13) List of IFRIC Interpretations
(14) List of SIC Interpretations
(15) List of Other pronouncements
(16) Adaption of IAS/IFRS in Bangladesh
(17) Adaption of IAS/IFRS in Bangladesh in Future -FRC
(18) Overview of IAS-1: Presentation of Financial Statements
(19) Overview of IAS-2: Inventories
(20) Overview of IAS-7: Statement of Cashflow
(21) Overview of IAS-8: Accounting Policies, Changes in Accounting Estimates and Errors
(22) Overview of IAS-10: Events After the Reporting Period
(23) Overview of IAS-12: Income Taxes
(24) Overview of IAS-16: Property, Plant and Equipment
Intermediate Accounting Chapter 1 about Financial Reporting
and Accounting Standards
After studying this chapter, you should be able to:
Describe the growing importance of global financial markets and its relation to financial reporting.
Explain the objective of financial reporting.
Identify the major policy-setting bodies and their role in the standard-setting process.
Discuss the challenges facing financial reporting.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
2. Demystify IFRS
Global
Convergence
Global Convergence
Necessity of International Harmonization of Financial
Regulation
Lack of comparison between countries;
Lack of comparison between companies;
Crisis of market confidence enhanced by recent financial scandals
Convergence over the years
The spread of IFRS use over the last seven years has been nothing
short of breathtaking. The global movement really started with the
European Commission’s decision in 2002 to require IFRS for all listed
companies in the European Union beginning in 2005;
Now, more than 100 countries use IFRS or have plans to adopt IFRS
or base their standards on IFRS (USA, Japan, China, …). Even
Canada, that has long had a convergence plan with U.S. GAAP, has
announced it will adopt IFRS in 2011.
Jean-Charles Hodouin – 11/29/2011
2
3. Demystify IFRS
Global
Convergence
Since 2001, over 100 countries have
required or permitted the use of IFRSs
2001: Formation of the IASC Foundation and IASB
2002: European Union passes regulation to adopt IFRSs
2003: Australia, Hong Kong and New Zealand commit to adoption of IFRSs
2005: In Europe nearly 7,000 listed business in 25 countries switch to IFRSs
2006: IASB and FASB agree roadmap for convergence between IFRSs and US GAAP
China adopts accounting standards substantially in line with IFRSs
2007: Brazil, Canada, Chile, India, Japan and Korea all establish timelines to adopt or converge with IFRSs
US SEC removes reconciliation requirement for non US companies reporting under IFRSs, and consults on IFRSs for domestic
companies.
Jean-Charles Hodouin – 11/29/2011
3
5. Demystify IFRS
Demystify IFRS
Global
Global
Convergence
Convergence
PART # 1 : Reminder of Standard-Setting
Standard-Setters
> In the United States of America
> In the Rest of the World
> In Europe
IFRS Standards
> Different Types of Standards
> Consequences in Europe
> Consequences in France
Jean-Charles Hodouin – 11/29/2011
5
6. Demystify IFRS
Global
Convergence
International Standard-Setting Processes
National
Global
Security Exchange
Commission
(SEC)
International Organisation
of Securities Commissions
(IOSCO)
Supranational
National
EU
Code de
commerce
Conseil National de
la Comptabilité
(CNC)
EU Directive
Financial Accounting
Standards Board
(FASB)
US GAAP
?
International
Accounting Standards
Board
(IASB)
CRCE/EFRAG
IFRS
Comité
d‘urgence
Comité de la
Réglementation
Comptable (CRC)
PCG/CRC
Sociétés françaises
The IOSCO assembles together the securities regulatory agencies all over the world. It is recognized as the
international standard-setter for securities markets.
Jean-Charles Hodouin – 11/29/2011
6
7. Demystify IFRS
Global
Convergence
Standard-Setting Process in USA
Equivalent of
IASC
Foundation
Financial Accounting
Foundation (FAF)
Equivalent of
IASB
Financial Accounting
Standards Board (FASB)
Financial Accounting
Standards Advisory
Council (FASAC)
Equivalent of
IFRIC
Emerging Issues
Task Force (EITF)
Equivalent of
SAC
Jean-Charles Hodouin – 11/29/2011
7
8. Demystify IFRS
Global
Convergence
Standard-Setting Process of IASB
Equivalent of
FAF
International Accounting
Standards Committee
Foundation (IASCF)
Equivalent of
FASB
International Accounting
Standards Board (IASB)
Standards
Advisory
Council (SAC)
Equivalent of
EITF
International Financial
Reporting Interpretations
Committee (IFRIC)
Equivalent of
FASAC
Jean-Charles Hodouin – 11/29/2011
8
9. Demystify IFRS
Global
Convergence
Convergence IFRS – US GAAP
The IOSCO which approves the standards elaborated by the IASB, is under the
influence of the SEC (Securities Exchange Commission). The latter requires for the
issuance of financial statements in IFRS in the United States :
A convergence of the general basic principles between the IFRS and US GAAP.
Therefore the IFRS, regarding the importance of the American financial markets, are
strongly inspired by the US GAAP.
The scandal of the broker in energy Enron, 7th American market capitalization made
become aware to the financial and accounting community the necessity of
harmonization of the standards.
The adoption of the IFRS validated by the European Union in June, 2002 is the direct
consequence of the filing for bankruptcy under protection of the chapter 11 of Enron.
A link between the US GAAP and the IFRS ALSO is inevitable.
However, the European Union by opting first for the IFRS, took the possibility to
intervene as user of these standards, and in the standard-setting process of the IASB.
Jean-Charles Hodouin – 11/29/2011
9
10. Demystify IFRS
Global
Convergence
Structure of the Set of IFRS Standards
Principlesbased
Approach
IAS/IFRS
Standards
SIC/IFRIC
Interpretations
The basic difference between IFRS and US GAAP reflects a
difference between the historically rules-based approach underlying
U.S. GAAP and the principles-based approach underlying IFRS.
Jean-Charles Hodouin – 11/29/2011
10
11. Demystify IFRS
Global
Convergence
Standard-Setting in Europe
Necessity of harmonization in Europe
Goal : create a single financial market ;
Promote comparative financial information ;
Decision not to choose US GAAP ;
Adoption of IAS/IFRS Standards
Result of Adoption
Financial Information dedicated to investors.
Jean-Charles Hodouin – 11/29/2011
11
12. Demystify IFRS
Global
Convergence
Adoption of IFRS in Europe
European Regulation July 19, 2002;
This regulation requires from European Countries:
Mandatory application of IFRS, for consolidated accounts
of public companies (after January 1, 2005).
For individual accounts, each European country can opt.
Jean-Charles Hodouin – 11/29/2011
12
13. Demystify IFRS
Global
Convergence
Adoption of IFRS in France
Public Companies
Non-Public
Companies
Establishing
Consolidated
Accounts
Other Companies
Consolidated
Accounts
Mandatory
application of
IAS/IFRS
Option for
application of
IAS/IFRS
Individual Accounts
Convergence to IFRS
by application of
"Preferred method"
Convergence to IFRS
by application of
"Preferred method"
NA
Regulation 2004-1382 of December 20, 2004
Jean-Charles Hodouin – 11/29/2011
13
15. Demystify IFRS
Global
Convergence
SEC Roadmap/Milestones
Milestones 1- 4 : Issues to be addressed before adoption of
IFRS
1.
Improvements in accounting standards
2.
IASC accountability and funding
3.
Improvement in the ability to use interactive data for IFRS
reporting: use of XBRL
4.
Education and training on IFRSs in the USA
6. SEC decides
if/when IFRS will
be required for all
issuers
Milestone 5
5. US issuers meeting specified criteria may
use IFRS for calendar 2009 and later year ends.
Jean-Charles Hodouin – 11/29/2011
15
16. Demystify IFRS
Global
Convergence
SEC Roadmap/Milestones
Milestones 5 - 7 : transition plan for mandatory use of IFRS
5.
Limited early use by eligible entities
6.
Anticipated timing of future rule making by the SEC
7.
Implementation of mandatory use
Milestone 7
7. Large accelerated filers might be required
to implement IFRS starting in calendar 2014
Milestone 7
7. Accelerated filers might be required to
implement IFRS starting in calendar 2015
Milestone 7
7. Non accelerated
filers in calendar
2016
Jean-Charles Hodouin – 11/29/2011
16
17. Demystify IFRS
Global
Convergence
Scenario in USA
Likely scenario and unanswered questions
SEC to require full IFRS for US public companies
FASB loses jurisdiction over those companies
• Will FASB have a future role and what will that be?
What about private companies
• What GAAP will they follow?
• Who will issue it?
Jean-Charles Hodouin – 11/29/2011
17
18. Demystify IFRS
Global
Convergence
Scenario in USA
Potential applicability to all US companies and more:
Subsidiaries of public companies
Subsidiaries of foreign companies
Investee where investor uses IFRS
Potential acquisition targets of IFRS acquirers
Potential sale to domestic or foreign buyer using IFRS
Considering an IPO in the future
Foreign lender that wants IFRS financial statements
Jean-Charles Hodouin – 11/29/2011
Imports goods and a major supplier wants IFRS
18
20. Demystify IFRS
Global
Convergence
Purpose of the Financial Statements
Provide relevant information on :
Financial Position
Profitability
Change in
Financial Position
Jean-Charles Hodouin – 11/29/2011
Economic
information useful
for decision maker
• Balance Sheet
• Income Statement
• Project of a statement called
« Information on global income »
• Statement of Cash Flows
• Statement of Change in Equity
20
21. Demystify IFRS
Global
Convergence
Investor is the First User
Investors
Personnel
Lenders
Suppliers and
other Creditors
Jean-Charles Hodouin – 11/29/2011
Clients
Users
Federal and State
Agencies
Public
21
22. Demystify IFRS
Global
Convergence
Standards of Presentation of
Financial Statements
Objectivity
Principle
IAS 1
IAS 7
IAS 8
Prudent
Principle
Jean-Charles Hodouin – 11/29/2011
IAS 10
IAS 14
IAS 24
IAS 33
IAS 34
IFRS 1
IFRS 8
Fair
presentation
Comparability
Presentation of Financial Statements
Cash Flow Statements
Net Profit or Loss for the Period, Fundamental
Errors and Changes in Accounting Policies
Events After the Balance Sheet Date
Segment Reporting
Related Party Disclosures
Earnings Per Share
Interim Financial Reporting
First-time Application of IFRS
Operating Segments
22
23. Demystify IFRS
Global
Convergence
Measurement
Materiality
Principle
Standards of Accounting and
Conservative
Evaluation
Concept
IAS 2
IAS 11
IAS 12
IAS 16, 36, 38, 40
IAS 17
IAS 18
IAS 19, IFRS 2
IAS 20
IAS 21
IAS 23
IAS 26
IAS 27 ,28 ,31 ,IFRS 3
IAS 32, 39, IFRS 7
IAS 37
IAS 41
IFRS 4
IFRS 5
IFRS 6
Jean-Charles Hodouin – 11/29/2011
Consistency
Principle
Inventories
Construction Contracts
Income Taxes
Assets and Depreciation
Leases
Revenue
Employee Benefits
Government Grants
The Effects of Changes in Foreign Exchange Rates
Borrowing Costs
Accounting and Reporting by Retirement Benefit Plans
Consolidation – Business Combination
Financial Instruments
Provisions, Contingent Liabilities and Contingent Assets
Agriculture
Insurance Contracts
Matching
Non-current Assets Held for Sale
Principle
Mineral Resources
23
24. Demystify IFRS
Global
Convergence
Main Differences
What are the differences between IFRS and U.S. GAAP?
For good reason: Understanding and addressing these
differences is central to the company’s financial reporting.
As noted earlier, the basic difference is the rules-based
approach underlying U.S. GAAP v. the principles-based
approach underlying IFRS.
• IFRS allows more choices, elections, alternatives
Is the
information
relevant?
Requires greater exercise of judgment
Is the
information
liable?
• Is US system/culture/infrastructure ready for this?
Jean-Charles Hodouin – 11/29/2011
24
25. Demystify IFRS
Global
Convergence
Main Differences
Cash :
U.S. GAAP exclude bank overdraft from cash. Under IFRS,
bank overdraft can be included in cash if they form an integral
part of an entity’s cash management (IAS7).
Inventories
IFRS permit an entity to reverse inventory write-downs (LCM)
in certain situations, whereas U.S. GAAP does not. IFRS also
require the recognition of certain development costs that U.S.
GAAP do not recognize. In valuing inventory under IFRS,
LIFO is prohibited.
Jean-Charles Hodouin – 11/29/2011
25
26. Demystify IFRS
Global
Convergence
Main Differences
Revenue Recognition :
Reflective of its principles-based approach, IFRS guidance
regarding revenue recognition is less extensive than U.S.
GAAP. IFRS, for example, does not have specific guidance
for software revenue recognition.
Extraordinary Items :
IFRS prohibit reporting items as extraordinary while U.S.
GAAP permits reporting items as extraordinary in the income
statement, albeit under very limited circumstances.
Major inspection or overhaul costs
Generally under IFRS, these costs are accounted for as part
Jean-Charles Hodouin – 11/29/2011
26
27. Demystify IFRS
Global
Convergence
Main Differences
Leases :
Under the prescriptive rule of FAS 13, the lease is equal to
75% or more of the estimated economic life of the leased
property. However, if the beginning of the lease term falls
within the last 25% of the total estimated economic life of the
leased property, including earlier years of use, this criterion
shall not be used for purposes of classifying the lease.
Under the descriptive principles IAS 17, the lease term is for
the major part of the economic life of the asset even if title is
not transferred.
Jean-Charles Hodouin – 11/29/2011
27
28. Demystify IFRS
Global
Convergence
Main Differences
Borrowing Costs :
U.S. GAAP mandate capitalization of borrowing costs for qualifying
assets,
but IFRS have permitted an entity to elect whether to capitalize or
expense borrowing costs for qualified assets, provided the entity is
consistent in its approach. Reflective of the convergence movement,
IFRS will use the U.S. GAAP approach after Jan. 1, 2009.
Development Costs :
They are capitalized if certain criteria determined under IAS 38 are
met.
Under US GAAP, development are expensed except for certain
website development costs and certain costs associated with
developing internal use software.
Jean-Charles Hodouin – 11/29/2011
28
29. Demystify IFRS
Global
Convergence
Main Differences
Revaluation of intangible assets :
U.S. GAAP prohibit generally to revaluate intangible assets,
Whereas it is permitted under IFRS only if the intangible asset trades
in an active market.
Basis of Consolidation Policy :
Control (look to governance) is required under IFRS.
Under US GAAP, approach depends on the type of entity. For voting
interest entities, look to majority voting rights. For variable interest
entities, look to a risk and rewards model whereby an entity is
consolidated by the primary beneficiary.
Jean-Charles Hodouin – 11/29/2011
29
30. Demystify IFRS
Global
Convergence
Main Differences
Fair Value :
Even where the use of U.S. GAAP and IFRS result in the
same assets appearing on a balance sheet, the values
attributed to those assets may be different.
FASB’s recent Statement no. 159, The Fair Value Option for
Financial Assets and Financial Liabilities, for instance,
provides for a fair value option that the statement’s summary
calls “similar, but not identical, to the fair value option in IAS
39.”
IFRS permit an entity to regularly revalue property, plant and
equipment to fair market value. An entity cannot pick and
choose under IFRS, however, and if it revalues one item
Jean-Charles Hodouin – 11/29/2011
within a class of assets, it must revalue all items within the
30
31. Demystify IFRS
Global
Convergence
Main Differences
Fair Value (continued) :
IFRS provides for crediting increases in values to a
revaluation reserve in the equity section of the balance sheet
while decreases in values are treated as expenses (Income
statement) to the extent the decreases exceed any previous
revaluation increases.
For investment property, both GAAP and IFRS approve of a
historical cost based method with depreciation and
impairment, but IFRS also permit an entity to account for the
property on the basis of fair market value, recognizing
changes in value as profit or loss.
Obviously, if the two sets of standards result in reflecting
different assets and asset valuations, one can also expect
Jean-Charles Hodouin – 11/29/2011
they will result in a difference in reported income or retained
31
33. Demystify IFRS
Global
Convergence
Webography
On the Web :
SEC Roadmap
• http://www.sec.gov/rules/proposed/2008/33-8982.pdf
IASB Web Site
• http://www.iasb.org/Home.htm
IAS PLUS (Deloitte)
• http://www.iasplus.com/usa/ifrsus.htm
Jean-Charles Hodouin – 11/29/2011
33