International Financial Reporting Standards (IFRS)

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International Financial Reporting Standards (IFRS)

The debate surrounding a possible U.S. convergence or adoption of the International Financial Reporting Standards (IFRS) continues. IFRS is the framework used by most developed countries today. While it does have growing support in the U.S., many have serious concerns regarding a convergence with IFRS.

Online Resources | Regulators | IFRS for SMEs | Education & Training

Latest News

FASB supports SEC’s IFRS statement and work plan
FASB welcomed the SEC’s decision to delay IFRS. In large part, the SEC will base its final decision on a global standard on FASB’s convergence project with the International Accounting Standards Board (IASB).

SEC delays IFRS convergence until 2015 (or later)
Executing a work plan to determine impact and potential timeline
A U.S. switch to IFRS is officially delayed following a unanimous vote from the SEC this week. The SEC said that a move to a global standard would be made no earlier than 2015.

IFRS Taxonomy 2010 open for public comment
The IFRS Taxonomy 2010 is available in an exposure draft for public comment until April 22.

IASB plans no fair value changes for European Union
The International Accounting Standards Board (IASB) said that it won’t change fair value rules based solely on demands coming from the European Union.

FASB, IASB tentatively define fair value as an exit price
FASB and the International Accounting Standards Board (IASB) tentatively defined fair value as an exit price during a joint meeting last week.

IFRS Accounting Trends & Techniques details how 100 top international companies use IFRS
The new AICPA book expands understanding and awareness of IFRS for managers, financial statement preparers, investors, analysts, and academics. Included in the 100 companies are BP, Nokia, Siemens, GlaxoSmithKline, Novartis, Vodafone, Royal Dutch Shell and Telecom Italia.

Online Resources

Join OSCPA’s International Section
IFRS, IASB, IFRS for SMEs. An international business world brings with it a whole new set of acronyms. Where do we stand on a potential convergence with IFRS? How does the IASB plan to fund operations? What other countries have adopted IFRS? Get to know the new acronyms and their related issues as you stay on top of the latest news and information facing the profession on a global scale.

IFRS

AICPA IFRS Web site
IFRS FAQs (AICPA)
Guide to International Financial Reporting Standards (IFRS)
from the AICPA’s Center for Audit Quality

IFRS for SMEs

Who are the key players?

SEC: Mary Schapiro, chair of the SEC, has expressed concerns regarding an adoption or convergence with IFRS, including the independence of the IASB and the timeline proposed in the IFRS roadmap proposed by her predecessor in 2007. The SEC has indicated that reaching a high-quality single global accounting standard remains a priority for the government agency and the SEC does plan to release a work plan in early 2010.

FASB: The Financial Accounting Standards Board believes that investors would be better served if all U.S. public companies used accounting standards promulgated by a single global standard setter as the basis for preparing their financial reports. Robert Herz, FASB chairman, estimated that a convergence of U.S. GAAP with the International Reporting Standards (IFRS) would not occur for 10 to 15 years. FASB and the IASB have reaffirmed their commitment to developing a global standard.

IASB: The International Accounting Standards Board promulgates IFRS. It is highly possible that a move to IFRS requires acceptance of the IASB as the global standards setter. The AICPA officially recognized the IASB as an accounting body for purposes of establishing international financial accounting and reporting principles. The independence of the IASB, however, has come in to questions and remains a concern for the SEC.

AICPA: The AICPA Council designated the International Accounting Standards Board (IASB) in London as an accounting body for purposes of establishing international financial accounting and reporting principles. FASB will continue to set standards in the U.S. AICPA has now designated four bodies to promulgate accounting standards: IASB, FASB, GASB, and FASAB.