Topics for Discussion. Convergence and Movement towards U.S. Adoption of IFRS SEC Advisory Committee on Improvements to Financial Reporting Issues Arising from the Credit Crisis. Convergence and Movement Towards U.S. Adoption of IFRS.
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Topics for Discussion • Convergence and Movement towards U.S. Adoption of IFRS • SEC Advisory Committee on Improvements to Financial Reporting • Issues Arising from the Credit Crisis
Convergence and Movement TowardsU.S. Adoption of IFRS • November 2007 – SEC eliminates reconciliation requirement for foreign filers (that use FULL IFRS) • Increased interest in U.S. in IFRS • Responses to SEC Concept Release on IFRS option • SEC Roundtable/FASB Forum/Conferences • Mixed views on IFRS option, requests for date(s) certain, many (but not insurmountable) transition issues September 2008 World SS Mtg.
Convergence and Movement TowardsU.S. Adoption of IFRS (cont’) • August 2008 – SEC proposes “roadmap” to eventual adoption of IFRS in U.S. • Early adoption would be available to limited group of companies starting in 2009 • Decision in 2011 whether to move to mandatory adoption of IFRS in 2014/15/16 conditioned on progress on FASB/IASB MOU, IASB funding/infrastructure experience in U.S. • Comment period ends in November 2008 September 2008 World SS Mtg.
Convergence and Movement TowardsIFRS in U.S. — So Now What Happens? • My prognosis (guess) • Impact of 2008 Presidential election? • We continue with MOU program with IASB • Focus on major joint projects • Should we continue “short-term” convergence projects? • The “riding 2 horses” problem • FASB reduced to 5 members, greater agenda authority with Chairman September 2008 World SS Mtg.
SEC Advisory Committee on Improvements to Financial Reporting (“CIFiR” or the “Pozen Committee”) • Objectives, Composition, Process • Principal Recommendations • Convergence and U.S. Adoption of IFRS • Accounting and reporting standards and guidance • SEC and PCAOB actions • Delivery of financial information • Also, Treasury Advisory Committee on the Auditing Profession September 2008 World SS Mtg.
Issues Arising from the Credit Crisis • Broad systemic issues in U.S. and across international capital markets • Also highlighted several reporting issues • Off-Balance Sheet Treatments • Securitizations • SPE’s (Conduits, SIVs, etc) • Disclosures • Fair Value • Standard Setting Responses • FASB • IASB • Joint September 2008 World SS Mtg.