Friday, June 5, 2009

IFRS News Roundup

This summary of IFRS news comes from the AICPA. You can subscribe to their daily news feed on their site.

FASB chairman unhappy with direction in rule-reform efforts Financial Accounting Standards Board Chairman Bob Herz said last month that reform efforts for accounting rules are being done in a piecemeal fashion to appease politicians. The end result, Herz said, will be rules that are hastily implemented but not necessarily the best fix for the system. "We desire to get to a common good answer with the IASB and we will make best efforts to do so, but some of the directions we are currently headed in are not to the liking of our board," he said. Reuters

FCAG members see threats to international accounting standards External pressures on the FASB and IASB could result in "tragedy," according to at least three members of a joint board the two groups formed last year. The members of the Financial Crisis Advisory Group said such pressures could threaten "the very existence of international accounting standards." FCAG Co-Chairman Harvey Goldschmid and FCAG members Nelson Carvalho and Michel Prada raised their concerns at a meeting last month. AccountingWEB (5/24) , WebCPA (5/26)

Official: U.S. takes risk by not adopting IFRS The U.S. will be "the outlier" unless it adopts International Financial Reporting Standards within five years, according to International Accounting Standards Board member John Smith. "Those countries already adopting and committing themselves to IFRS will not accept a situation where the United States remains outside the system indefinitely, yet has a seat at the table," he said. For IFRS daily updates, training and other resources, visit

Gerhard Mueller: Accounting education must support IFRS IFRS and U.S. GAAP will converge over the next five to 10 years with a few minimal differences to accommodate "U.S. domestic quirks," said Gerhard G. Mueller, a longtime proponent of international accounting. One of the greatest challenges confronting convergence is accounting education in the U.S. fully integrating IFRS into textbooks and the curricula, he said. (5/8)

Fund managers pressure IASB on accounting rules update Investors and fund managers want the International Accounting Standards Board to speed up its reform efforts aimed at eliminating fundamental problems with International Financial Reporting Standards. Many blame the rules for helping fuel problems in the banking sector. "It is time to wrap a cold towel around our heads. The end result has got to be an accounting system that looks after everyone and does not flatter profit and to take provisions when they are first apparent," said Andy Brough at Schroders. Telegraph (London) (5/17)

Mixed reviews greet revenue-recognition proposal More than half of the senior finance executives responding to a survey indicated they support a proposal of contract-based standards for revenue recognition, but some questioned how the rules would work in practice. The Financial Accounting Standards Board and the International Accounting Standards Board proposed a revenue-recognition model for use in Generally Accepted Accounting Principles and International Financial Reporting Standards. FASB will accept comment letters until June 19. WebCPA (5/28)

Analysis: New IASB standards on fair value offer consistency AccountingWEB (5/29)

IASB responds to financial crisis with fair-value proposal The International Accounting Standards Board is attempting to alleviate political pressure by proposing guidelines for fair-value accounting standards. "This exposure draft is an important milestone in our response to the global financial crisis," said IASB Chairman Sir David Tweedie. "It proposes clear and consistent guidance for the measurement of fair value and also addresses valuation issues arising in markets that have become inactive." WebCPA (5/29)

CPAs add IFRS knowledge but want SEC to allow more time for adoption CPAs gained familiarity with International Financial Reporting Standards over the past several months, according to an AICPA survey. When asked whether they think the Securities and Exchange Commission's proposed timeline should be changed, 47% said it should be delayed. Twenty-two percent supported the proposed timeline, and 6% want it to be accelerated. The remainder were unsure. Read the AICPA news release. (5/14)

"All market participants" need IFRS training The first and most obvious question to ask about IFRS training is just who needs it. According to Remi Forgeas, CPA, the answer is "all market participants." That doesn't just mean CPAs, chief financial officers, accounting departments and auditors, he argues, noting that IFRS training is essential for a broad spectrum of people who will need to interact with IFRS as a part of their responsibilities. CPA Insider (5/26)

EU might ignore IASB, enact its own IFRS, council warns The Financial Reporting Council said in its annual report that the International Financial Reporting Standards, as written by the International Accounting Standards Board, are at risk from interference by European Union politicians. "We continue to have significant concerns that the EU might adopt its own version of IFRS, rather than the standards as published by the IASB," the council said. Accountancy Age (London) (5/27)

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