1 / 14

International Financial Reporting Standards

International Financial Reporting Standards. Jennifer Tam Lynn Wang Mike Zaretsky Erin Larson Ashish Jain. Audience.

aderyn
Download Presentation

International Financial Reporting Standards

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Financial Reporting Standards Jennifer Tam Lynn Wang Mike Zaretsky Erin Larson Ashish Jain

  2. Audience “Institutional investors are pension funds, mutual funds, money managers, insurance companies, investment banks, commercial trusts, endowment funds, hedge funds, and some hedge fund investors. They account for half of the volume of trades on the New York Stock Exchange. They move large blocks of shares and have tremendous influence on the stock market's movements. Institutional investors are considered to be knowledgeable and, therefore, less likely to make uneducated investment.” Source: Investopedia.com

  3. Message • IFRS is for YOU • Benefits of IFRS include: • Cost savings • Comparability • Confidence • Transparency

  4. Media • Print media • Institutional Investor magazine and others • Wall Street Journal • Internet • Information “hub” at www.aicpa.org/ifrs-for-you • Web site address identified in print ads • Automatically receive mobile/electronic news and updates

  5. Deficiencies in U.S. GAAP • Rules-based accounting provides loopholes and makes companies less accountable

  6. Deficiencies in U.S. GAAP • Investor confidence is at all-time low • Lower Income by allowing LIFO • No one else follows it – higher cost, less comparability

  7. IFRS Overview • A set of country-neutral accounting standards that continue to evolve • Over 100 countries require or permit IFRS

  8. IFRS Rocks • Cost savings and increased earnings • Single set of global accounting standards • International comparability • Improve investor confidence by suggesting proper accounting treatments

  9. Increased Earnings • LIFO not allowed – this will force companies to report accurate and higher earnings

  10. Increased Earnings • Revaluation of PPE (Property, Plant, and Equipment) allowed • Most Leases would be classified as Operating Leases

  11. Increased Earnings • Significantly shorter than full IFRS for small and medium sized entities (SMEs) (95% of all companies will be covered)

  12. Cost Savings • Lower Cost of Capital – global comparability among companies will provide them with access to worldwide capital • A single set of financial standards - less time to prepare and fewer resources needed worldwide

  13. Questions?

  14. Sources • www.ifrs.org • www.aicpa.org • AICPA webcast “What IFRS Means to You” • http://www.pwc.com/us/en/issues/ifrs-reporting/index.jhtml • http://www.ey.com/Publication/vwLUAssets/IFRS_v_GAAP_basics_Jan09/$file/IFRS_v_GAAP_basics_Jan09.pdf

More Related