IFRS vs. US GAAP. Anthony P. Pencek, CPA IMA NERC-Mystic, CT September 20, 2010. Accountant’s Cartoon . International Financial Reporting Standards (IFRS) vs. US Generally Accepted Accounting Standards (GAAP). What does it mean for you?. Convergence!!!!. Dictionary Definition:
Anthony P. Pencek, CPA
IMA NERC-Mystic, CT
September 20, 2010
What does it mean for you?
Convergence means “to tend or move toward a common point or result.”
Goal– Comparability and Consistency
See Next Slides
Continued IFRS/US GAAP convergence – milestones must be met by 2011
Train/monitor progress: Numbers, people, systems, processes
Based on 2015 implementation date
Based on SEC proposal to begin IFRS for large accelerated filers in 2014
Proprietary & Confidential Trade Secret Protected
SEC Chief Accountant article regarding progress on convergence
P reconciliation for foreign filers
SEC holds roundtables discussions
Roundtable discussions held on the impact of IFRS on US Capital Market – overwhelming support for elimination of the reconciliation
SEC eliminates the requirement for reconciliation to US GAAP to FPI’s using IFRS as adopted by IASB
Concept Release issued for comment, allowing US issuers the option to use IFRS
SEC issues initial “roadmap”
Approved proposal to eliminate the reconciliation to US GAAP for foreign filers,
“New” SEC reinforces “roadmap”
Propose adoption in US
-French Government recently voted to allow certain industries, the wine industry to be exact, to sidestep certain IFRS standards to help that industry.
-Japan’s Firms definition of Finished Goods Inventory or Merchandise Inventory has it as a liability not an asset due to
- Storage Charges, Insurance on it, Safeguarding it, concept of Just In Time
________Are these really IFRS Standards??________
-Mentioned that on the board there are 14 members and they are from United States, South Africa, Japan, China, Sweden, France and United Kingdom.
-Panelists stated time consuming and costly to use IFRS.
-Are they getting better information to the creditors, regulators, investors and management were questioned? Are the interested parties getting value for this exercise? MAYBE??
XBRL– ALREADY AVAILABLE AND BEING USED TO REPORT UNDER IFRS