Thursday, January 7, 2010

Recent IFRS Developments and News

The AICPA has an excellent monthly news digest of current IFRS news. Below is their most recent release. You can subscribe using the link at the bottom of this post.

Panel to study issue of accounting standards for private companiesA panel created by the AICPA and the Financial Accounting Foundation with support from the National Association of State Boards of Accountancy will explore questions about the future of standard setting for U.S. private companies. Recommendations are expected this year. AICPA President and CEO Barry Melancon, CPA, said he sees potential for significant action resulting from the group's work. "There has never been an effort at this level to address this issue," Melancon said. (12/17)

Boards: Politics won't halt push to converge accounting rulesPolitical pressure has caused convergence efforts between the International Accounting Standards Board and the U.S. Financial Accounting Standards Board to drift apart. In October, the two standard setters met and subsequently issued a statement reaffirming their commitment to convergence of major topics by June 2011. Forbes (12/15)

Disregard IFRS 9 standard, says IASB's LeisenringJames Leisenring urged an audience at an accounting conference to ignore the new IFRS 9 standard for financial instruments issued by the International Accounting Standards Board in November. According to Leisenring, the board -- of which he is a member -- was influenced by political pressures when it recommended the standard. Mandatory adoption is five years away and there may be changes as the FASB works on its standards for financial instruments. WebCPA (12/10)

Other News

Adoption of IFRS 9 prompts confusion in year-end reportingComputeractive (U.K.) (12/19)

Tokyo Stock Exchange's chief cites concern about move toward U.S. fair-value systemFinancial Times (tiered subscription model) (12/31)

Issues remain regarding harmonization of accounting standardsDirector of Finance (U.K.) (12/21)

IPSASB achieves convergence with IFRSWebCPA (12/22)

Regulatory Developments

SEC signals that action on IFRS is forthcomingThe Securities and Exchange Commission could consider further action on IFRS adoption early this year, according to Commissioner Elisse Walter. Walter's comments came at an AICPA conference, on the heels of SEC Chief Accountant James Kroeker's comments that more information about IFRS adoption would be coming "in the short term." For daily updates, training and other resources, visit (12/9)

EU regulator warns of division on standardsSenior European Union regulator Eddy Wymeersch has called for an independent review of international accounting standards and said the International Accounting Standards Board is increasingly at odds with U.S. standards. The IASB's mixed-model method of valuing assets, the first part of so-called IFRS 9, differs from the U.S. fair-value model. Meanwhile, officials from 33 countries met in Paris in early December to discuss enforcement of IFRS around the world. Financial Times (tiered subscription model) (12/2) , (12/7)

Analysis: How IFRS adoption will impact taxesAn analysis by John R. McGowan and Matt Wertheimer examines how a shift to International Financial Reporting Standards by the Securities and Exchange Commission would affect tax policy in the U.S. The Tax Adviser (12/2009)

Japan's voluntary IFRS adoption puts pressure on U.S.Japan's Financial Services Authority put pressure on the U.S. to adopt International Financial Reporting Standards after it said it would allow voluntary domestic use of the standards, starting with fiscal years ending on or after March 31, 2010. Japan had been the biggest country after the U.S. to hold out on adopting the standards. "The FSA's decision to permit domestic use of IFRS represents a first step towards a mandatory use of IFRS in Japan, and is an important milestone on the path towards global standards," International Accounting Standards Board Chairman Sir David Tweedie said in a statement. WebCPA (12/11)

China would get boost from Hong Kong's acceptance of standardsHong Kong intends to accept Chinese accounting standards. The move would push forward Beijing's efforts to globalize China's financial sector. The effort has faced delays over concerns about Chinese auditors. The New York Times/Reuters (12/30)

Argentine companies to use IFRS accounting rules by 2012All Argentine companies with publicly traded securities will be required to adopt International Financial Reporting Standards starting in 2012, the government announced Dec. 29. Companies will have the option of adopting the standards in 2011. The Wall Street Journal/Dow Jones Newswires (12/30)

2010 will be year of new regulationsWith new financial regulations seemingly imminent, Menaka Doshi asked three of India's most prominent chief financial officers whether the country is ready for such changes in regulatory and tax law. Neither companies nor regulators are prepared to adopt International Financial Reporting Standards, according to Y.M. Deosthalee of Larsen & Toubro. (India)/CNBC-TV18 (India) (1/4)

Financial executives give advice on implementing IFRS In a new article on, three financial executives from large international companies discuss their experiences with preparing to move to International Financial Reporting Standards. Learn what they believe are the keys to a successful transition from U.S. GAAP.

Contribute to wiki on IFRS for Small and Medium-Sized Entities comparison to U.S. GAAP The AICPA is developing a resource that compares the International Financial Reporting Standard for Small and Medium-Sized Entities with corresponding requirements of U.S. generally accepted accounting principles. This resource is available in a wiki format and all are invited to contribute to its development. To learn more, view available sections and contribute to its content, click here.

AICPA looking for IFRS experts to help develop certificate of accomplishment program The AICPA Learning team is developing an IFRS Certificate of Accomplishment program for CPAs and chartered accountants that will equip participants with the knowledge and experience to apply IFRS in the U.S. The AICPA is seeking subject matter experts with extensive IFRS knowledge and experience in IFRS application and/or training to help develop the program. SMEs should have active CPA or CA credentials; broad knowledge of both IFRS and U.S. GAAP; experience applying IFRS at the transaction and financial reporting levels; experience converting an entity from a national GAAP to IFRS; and experience training others in IFRS. For more information, click here.

Learn key IFRS concepts with IFRS Digest

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