Adopting IFRS Key to global financial success

According to the Associated Press, federal regulators stated Monday that it's critical for the United States along with other countries to adopt one international accounting standard. By all countries having the same policies, we would better avoid another economic crisis. Both those on Wall Street and in the Accounting industry agree with this statement. US companies have the option to begin adopting the new accounting standards next year. Read the full article here.

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.

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?

Brazil adopts IFRS

According to Bloomberg, in the process of adopting their accounting system to IFRS, the Valor Economico of Brazil announced plans to adopt an accounting rule that would decrease the value of assets at companies that receive government consessions. It would not allow certain assets to be booked on utilities balance sheets. Read the article here.

IFRS versus US GAAP

At the Accounting Principles blog, Malcolm McKay recently looked at the differences between US GAAP versus the IFRS systems of accounting. He pointed out that according to Audit Integrity, there are no noticable differences between the two systems. He also states that US GAAP has tools that allow for better reporting. What do you think? Is it important to join the rest of the world and keep books in the same accounting method or look towards US GAAP, which according to reports, allows for better analysis?

An Objective Look at International Financial Reporting Standards (IFRS), the report by Audit Integrity, can be read here.

IFRS and the IT world

In a new article at Computer World, they look at the upcoming decision on converting the United States' accounting system to IFRS, which is regarded globally as the universal accounting standards. This will: help provide transparency information to investors, make it easier to understand financial statements, and help companies make more efficient investment decisions. The decision will be made in 2011 as to whether to adopt the process, and all conversions to the system will have to take place by 2014. The article looks at how CIOs will have to change their current practices. Read it here.

Are CFO’s confused over IFRS?

Dennis Howlett writes, there’s a lot of talk about IFRS implementation in the US but the survey results suggest there is a significant amount of eduction to be delivered. If professionals are unclear about the requirements or its impact, it’s almost impossible for them to form an opinion as to the appropriateness of its application.

The survey that Howlett refers to was from a Grant Thornton study on attitudes to IFRS, the particular excerpt can be found on Howlett's post here.

Read Howlett's entire article by clicking here.

The future for US accounting

In a recent report at WebCPA, they look at the current push to have the USA transition from the GAAP accounting system to IFRS. Industry leaders and accounts are currently calling for a more certainty in the transition between the two. Another roadblock may be the views of Mary L. Schapiro on the plan of adoptoin of the new system.

D.J. Gannon, national leadership partner at Deloitte & Touche’s IFRS Center of Excellence, stated:
“They want certainty. Five to seven years is sufficient time for most people to get through what they have to get through.”

Read the full article here.