Beruflich Dokumente
Kultur Dokumente
US GAAP
Anthony P. Pencek, CPA
IMA NERC-Mystic, CT
September 20, 2010
Accountants
Cartoon
Convergence!!!!
Dictionary Definition:
Convergence means to tend or move
toward a common point or result.
Goal Comparability and Consistency
Mandatory
the EU
Permitted
Commonly
Many
TOMORROW
By
Private Issuers
are in Canada
All
1/3 of US Foreign
Potential Implementation
Based on 2015 implementation date
Timeline
Continued IFRS/US GAAP convergence milestones must be met by 2011
2011-2014
2010
2011
Put team
together
Train
Keep track
of
convergence
Impact
analysis
Create
formal plan
2011-2014
2015
Fill SME
gaps
Impact on
processes/IC
Develop
communicati
on plan
Choose IFRS
1 options
Make policy
choices
Restate
/reaudit
Issue
financial
statements
Summer 2007
November 2007
August 2008
February 2010
SEC eliminates
the requirement for reconciliation to US GAAP
Concept Release issued for comment, allowing US issuers the option to use IFRS
to FPIs using IFRS as adopted by IASB
Approved proposal to eliminate the reconciliation to US GAAP for foreign filers,
SEC issues initial roadmap effective immediately
Propose
in US roadmap
New
SECadoption
reinforces
EXAMPLE OF EARNINGS
DIFFERENCE IFRS VS GAAP
DAIMLER BENZ
IFRS STANDARDS IN PLACE FOR YEAR
2006, ITS OPERATING PROFIT OF $2.4 BIL
IF USED US GAAP STANDARDS, THEY
WOULD HAD SHOWN A LOSS DUE TO
NOT CAPITALIZING RESEARCH
EXPENDITURES, ETC.
Limitation of IFRS
Pick and Choose which standards to be enforced or
used by companies within its borders by government
-French Government recently voted to allow certain
industries, the wine industry to be exact, to sidestep
certain IFRS standards to help that industry.
-Japans 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??________
Bibliography
AICPA, International Financial Reporting
Standards (IFRS), an AICPA Backgrounder
AICPA Website, www.aicpa.org
AICPA IFRS website, www.ifrs.com
University Professors Weigh in on Building IFRS
in Curricula, KPMG-AAA Survey. In
www.Marketwatch.com.
Colleen Cunningham, CPA talk on IFRS, IMA
National Conference, June 2010
Bibliography
(Continued)
International Federation of Accountants
website, www.iafc.org
SEC website, www.sec.gov
Price Waterhouse Coopers Website,
www.pwc.tv
Bruce Pounder, CMA, CFM articles in
Strategic Finance, contact and website,
BPounder@leveragedlogic.com
Questions????
Thank you!!