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2012 ACCOUNTING GAMES. STARRING IFRS. “International Financial Reporting Standards (IFRS) are a set of accounting standards developed by in the International Accounting Standards Board becoming the global standard for the preparation for public company financial statements”. I. S. F.
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2012 ACCOUNTING GAMES STARRING IFRS
“International Financial Reporting Standards (IFRS) are a set of accounting standards developed by in the International Accounting Standards Board becoming the global standard for the preparation for public company financial statements” I S F R R
Going for Gold I S F R R
Goal of IFRS • High quality, understandable, enforceable, and global accepted financial reporting standards • Principle based I S F R R
Why Should We Switch Teams? • Higher quality investments • Comparability • Raise disclosure standard • Consistency I S F R R
Team Player Award Regulators Investors Stakeholders Academics National Standard Setters Auditors I S F R R
What does IFRS stand for? I S F R R A. Interesting Friends Read Stories B. International Financial Reporting Standards C. Imperial Framework Regarding Standards C. Important Financial Reporting School
I S F R R B. International Financial Reporting Standards
How are the IFRS standards based? • How are the IFRS standards based? • A. Rule Based • B. Fun Based • C. Principle based • D. Consistency based I S F R R
C. Principle based I S F R R
Battle for the Gold I S F R R
Pros • Comparability • Reduced Information asymmetry • Audit Efficiency • Relevance • Excellent Labor Mobility I S F R R
Cons • Relearn • Cultural Influence • Costly • Diminish U.S. power over accounting • Extraordinary loss/gain not allowed I S F R R
Differences Between GAAP and IFRS Inventory Consolidation Development Cost Earnings-per-Share Statement of Income I S F R R
Which of the following is NOT an advantage of IFRS? • Comparability • Relevance • Admittance into VIP sections world-wide • Audit efficiency I S F R R
True/False True/False: “IFRS allows using LIFO method for inventory measurement” I S F R R
True/False FALSE I S F R R
AIS Implications I S F R R
Areas of Impact within AIS • New Data Requirements • Changes to the Chart of Accounts • Reconfiguration/Modification of Existing Systems • Selection and Implementation of New Systems • Interface and Mapping Changes • Reporting Packs I S F R R
Information System Impacts I S F R R
Information System Impacts I S F R R R
What is not one a major issue areas for implementation in AIS? I S F R R • New Data Requirements • Selection and Implementation of new systems • Accounts Payable Module • Reconfiguration/Modifcation of existing systems.
I S F R R C. Accounts Payable
A winning strategy I S F R R
Two Approaches to IFRS Implementation I S F R R
USA Implementation Milestones • Improving Specific Accounting Standards • Improving the Structure and Funding of the IASB • Facilitating the use of interactive data (XBRL) under IFRS • Updating the Education and Licensing of U.S. Accountants • Evaluating the early adoption experiences of a limited group of companies • Timing of future rulemaking • Sequencing of companies required to use IFRS • USA plans to completely converge in 5-7 years I S F R R
I S F R R
In many years does the United States hope to be fully converged to IFRS? • A.) 1-3 years • B.) 7-10 years • C.) Never • D.) 5-7 Years I S F R R
D.) 5-7 Years I S F R R
What are your concerns regarding implementation and change to IFRS from GAAP? I S F R R
Conclusion • Principle based • Uniform, global accounting standards • Higher quality of investments • Approximately 120 nations have adopted • Benefits outweigh costs • Who are the gold medalists of the 2012 Accounting Olympics? I S F R R
Sources • http://www.ifrs.com/ifrs_faqs.html#q3 • http://www.foxbusiness.com/personal-finance/2011/11/28/what-switch-from-gaap-to-ifrs-may-mean-for-investors/#ixzz1v59BUY7P • http://www.ifrs.org/Use+around+the+world/Use+around+the+world.htm • http://www.ifrs.com/overview/General/differences.html • www.pwc.com • http://ifrsusa.wordpress.com/ifrs-roadmap-milestones/ I S F R R