International Financial Reporting Standards
International Financial Reporting Standards (IFRS) is the framework used by most developed countries today and has growing support in the United States.
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Recent IFRS News
Private company committee considers application of IFRS
The Private Company Financial Reporting Committee discussed the possibility of applying International Financial Reporting Standards to private companies in the U.S.
FASB and IASB target 2011 as date for major joint project completion
FASB and IASB published an update to their 2006 memorandum of understanding with a goal of completing major projects by 2011 – including a convergence of U.S.GAAP and IFRS. Read more.
SEC proposes IFRS roadmap
Sets tentative date for mandatory filing at 2014
The SEC is publishing for comment a proposed roadmap for adoption of International Financial Reporting Standards (IFRS) by U.S. public issuers that file with the SEC. The outline sets a tentative effective date for 2014 for mandatory filings using IFRS. Read more.
Hot Topic Webinar: IFRS - Differences with U.S. GAAP
Nov. 10, 1-2:30 p.m.
This webinar will provide a high-level understanding of the significant IFRS and U.S. GAAP differences.
The Ohio Society will have sessions at the following events on IFRS:
The SEC is publishing for comment a proposed roadmap for adoption of International Financial Reporting Standards (IFRS) by U.S. public issuers that file with the SEC. The outline sets a tentative effective date for 2014 for mandatory filings using IFRS. In 2011, the SEC could determine when and if to make a mandatory requirement for filing using IFRS. Should the decision to mandate IFRS in 2014 be made, the SEC could open the window for more early adopters to begin filing using IFRS. Read more on the roadmap.
We are increasingly becoming a global society as businesses of all shapes and sizes find opportunities to compete in international markets. The U.S. financial reporting environment is incredibly complex and businesses are increasingly seeking diverse sources of capital. IFRS is a commonly accepted standard in much of the world and provides a high-quality principles-based platform that retains transparency, reduces the complexity and encourages use of professional judgment.
More than 100 countries have adopted IFRS, with India being the most recent. India plans to adopt the standards by 2011. Japan, Canada and South Korea are expected to soon follow suit. India continues to grow as a leader for outsourcing destination, in particular for finance and accounting responsibilities and their support for IFRS is even more important to the global movement.
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. The AICPA has developed an IFRS Web site for more extensive resources about IFRS.
SEC: The SEC is publishing for comment a proposed roadmap for adoption of IFRS with a potential effective date of 2014 for mandatory filings using IFRS. The SEC also recently unveiled "IDEA" – the new interactive XBRL database, the successor to EDGAR.
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. (From FASB/FAF comment letter on allowing U.S. registrants to use IFRS and the proposal release to eliminate the requirement for certain foreign filers to reconcile to U.S. GAAP.) Current FASB Chair Robert Herz gave an interview with the Journal of Accountancy in February. During this interview, he spoke very frankly about international convergence of standards and the future of FASB.
IASB: The International Accounting Standards Board develops 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.
More hot issues being monitored by The Ohio Society:
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