What does Kroeker’s appointment mean for IFRS?

On Tuesday, the Securities and Exchange Commission appointed James L. Kroeker the permanent chief accountant at the agency. Many in the industry thought SEC’s Mary Schapiro would select someone with a little more resistance to IFRS. How will the industry respond to a big four Chief Accountant? And most importantly, what does Kroeker’s appointment mean for the timelines surrounding IFRS adoption?

You have an opportunity right around the corner to hear from the industry’s brightest minds regarding IFRS, mark-to-market, fair market value, and much more at this year's Pharma Financial Forum. But you need to act now and register by Friday, August 28, so you can save $200! See the brochure here.

James L. Kroeker becomes SEC's permanent cheif accountant

The Wall Street Journal stated that James L. Kroeker will become the permanent chief accountant for the Securities and Exchange Commission. He has been serving as the chief accountant since January. He will be overseeing accounting interpretations, professional practice issues and international accounting matters.

How do you think Kroeker's new position will affect the United States and it's adoption of IFRS?

Controlling your risk when converting to IFRS

The Journal Of Accountancy recently published a post that looks at how companies can take precautions when it comes to converting from GAAP to IFRS. One of the key areas that will be affected during the conversion will be IT, as many of the systems will be changing due to the new accounting methods. Read the full article here.

FASB's changes on disclosing private information

According to CFO, there is debate as to how companies are handling lawsuits and their accounting rules and disclosures. Under the new rules of FASB, companies would not have to disclose any information that they feel is prejudicial or confidential. This would include not disclosing any information about the money they pay to investors to settle disagreements.

Last September, when the board decided companies would have at least another year before having to comply with the new rules, it agreed to collect more feedback by asking companies to do sample runs of its first proposal and the alternative version currently being crafted. However, only a few companies have shown interest in participating.

Read the full article here.

Adopting IFRS slowing

In an article recently at Reuters India, they look at how the current global economy is just one of the latest factors holding up the adoption of IFRS globally. Due to the credit crisis, many countries have seen the need to adopt a more consistent and transparent accounting system. However, with the US failing to provide a date as to when they'll be adopting the system. The G20 Finance ministers are meeting in London next month, which many hope will be the key to getting the adoptoin of IFRS on track. Read the full article here.

Fair market value rules may expand

According to Bloomberg, last week, FASB decided to consider expanding fair market value rules. Accountants could end up expanding mark-to-market across all financial assets. Read the full article here.

New network for accountants

A new social network for accountants has been launched. Hub Street is a social network that brings together accountants, lawyers, and lenders to create connections in the industries. It also has a unique aspect for social networks.

Fox Coaching Associates CEO Nancy Fox explains, “Let’s face it – it’s not what you know, but who you know. Unlike most online and face-to-face networks, HubStreet takes the work out of networking for lawyers, accountants and lenders by bringing them together with the right quality connections — professionals and experts that are relevant to their business.”

Read the full article here.

Former AIG Executive settling accounting charge

Maurice "Hank" Greenberg, Former American International Group Chief Executive, will pay $15 million to settle an accounting charge.

According to the article,

Greenberg and Smith were responsible for "material misstatements" that helped AIG create the false impression that the insurer had consistently met or exceeded key earnings and growth targets, the SEC claimed.

Read the full article here.

How are you handling the transition to IFRS standards?

The SEC estimates the transition from US GAAP to IFRS will cost each early adopter $32 million over the first three years. Although the convergence for large accelerated manufacturers doesn’t occur until 2014, you can start reducing your $32 million spend by planning for a smooth, timely transition today.

• Have you planned for the cost associated with transitioning to IFRS?
• Do you understand the impact it will have on your accounting team?
• Will you get approval to bring in an accounting firm to help with the transition and when you do will it be too late?

The SEC continues to send mixed messages about the IFRS roadmap - This October, The Pharma Financial Forum will prepare you for these changes by providing a blueprint for making a seamless transition to IFRS standards. Participate in a featured session entitled “Determine

How Quickly to Move Toward the Adoption of IFRS”, which offers insights on:
• Ascertaining a more accurate sense of when IFRS implementation will trickle down to smaller companies
• Pinpointing which processes within the conversion to focus on over the next two years
• Selecting strategies for keeping up with standards without overinvesting in the transition to IFRS

Be sure to visit our website for more information and complete program details.

**If you register by this Friday, August 7, you'll receive $300 off the standard registration price! Find out more here.

Tweedie encourages US to join IFRS

At WebCPA, they divulge that Sir David Tweedie has encouraged the United States to come up with an adoption plan for IFRS. Although Tweeide has and FASB Chairman Bob Hertz have worked closely together to weave US GAAP into IFRS, the new leader of the SEC, Mary Schapiro has not said whether or not she has approved of the latest model of the roadmap to adoption.

During the American Accounting Association's annual accounting meeting, Tweedie stated: "This is a very interesting moment for us, a once-in-a-lifetime moment. Where is the USA? That is a question I am asked all around the world. The convergence program is designed to reduce the cost of transition. FASB is riding two horses: U.S. GAAP and trying to converge at the same time, but so are we. We get a lot of criticism over the favored-nation status toward the United States. The European Federation of Accountancy Bodies has just talked about how the point has been reached where there have been diminishing returns from convergence with U.S. GAAP, particularly as more and more countries, including major economies such as Japan and India, move toward direct adoption of full IFRS, and the IASB should change its strategy and concentrate exclusively on major improvements and simplifications of IFRS for the short term. We think that’s wrong. If you’re going to have global standards, we need the U.S., but it can’t go on indefinitely. We’ve been converging for seven years. We have a timetable to finish in 2011. It’s designed to fit these major economies — Korea, Canada, Japan, India — who are converging that year. We have to finish this year.”

Read the full write up here.

CPAs knowledge in IFRS and GAAP

The IFRS blog recently asked if your CPA was bilingual. Although the United States has not yet fully committed to adopting IFRS, many other countries throughout the world have begun to take the steps to adopt this new worldwide accounting system. EM sees a new state of accounting in 2012, that where either the US has adopted IFRS or an accounting world where IFRS and GAAP coexist. So, he believes CPAs should begin now learning how to account in both systems. Many accounting classes throughout colleges have already begun to integrate this new system. What do you think? Even though it's not clear if accounting will be in the IFRS system by 2012, should CPAs begin acquainting themselves now? If you are a CPA, what's your stance?