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STARRING IFRS

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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STARRING IFRS

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  1. 2012 ACCOUNTING GAMES STARRING IFRS

  2. “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

  3. Going for Gold I S F R R

  4. Goal of IFRS • High quality, understandable, enforceable, and global accepted financial reporting standards • Principle based I S F R R

  5. Why Should We Switch Teams? • Higher quality investments • Comparability • Raise disclosure standard • Consistency I S F R R

  6. Team Player Award Regulators Investors Stakeholders Academics National Standard Setters Auditors I S F R R

  7. 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

  8. I S F R R B. International Financial Reporting Standards

  9. 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

  10. C. Principle based I S F R R

  11. Battle for the Gold I S F R R

  12. Pros • Comparability • Reduced Information asymmetry • Audit Efficiency • Relevance • Excellent Labor Mobility I S F R R

  13. Cons • Relearn • Cultural Influence • Costly • Diminish U.S. power over accounting • Extraordinary loss/gain not allowed I S F R R

  14. Differences Between GAAP and IFRS Inventory Consolidation Development Cost Earnings-per-Share Statement of Income I S F R R

  15. 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

  16. C. Admittance into VIP sections world-wide I S F R R

  17. True/False True/False: “IFRS allows using LIFO method for inventory measurement” I S F R R

  18. True/False FALSE I S F R R

  19. AIS Implications I S F R R

  20. 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

  21. Information System Impacts I S F R R

  22. Information System Impacts I S F R R R

  23. Example of AIS Convergence to IFRS I S F R

  24. 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.

  25. I S F R R C. Accounts Payable

  26. A winning strategy I S F R R

  27. Two Approaches to IFRS Implementation I S F R R

  28. 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

  29. I S F R R

  30. 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

  31. D.) 5-7 Years I S F R R

  32. What are your concerns regarding implementation and change to IFRS from GAAP? I S F R R

  33. 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

  34. 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

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