IFRS Update: AFP Articles on International Financial Reporting Standards

Recent articles from the AFP Web site, Exchange magazine and AFP's Accounting and Financial Reporting newsletter.

COMMENTARY: ARE WE READY FOR INTERNATIONAL ACCOUNTING STANDARDS?
January 31, 2008
(From the Jan/Feb 2008 edition of Exchange magazine)
There currently is significant pressure for U.S. regulators to adopt International Financial Reporting Standards (IFRS) as a reporting alternative for U.S. domestic companies. A single set of global accounting standards does make good sense. Multiple sets of accounting rules add costs to companies and it confuses investors, particularly in our present global economy. However, the question that must be asked is, are we ready? 
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BEHIND THE DISAGREEMENT ON EC, US ACCOUNTING STANDARDS COMPLIANCE
January 15, 2008
(This commentary is excerpted from the December 2007 issue of Exchange magazine.)
We will never arrive at a single set of accounting standards if every country thinks that they have the right to be an exception to the rule. The European Commission seems not to want one single set of accounting standards unless it is its accounting standards. While the EC states support International Financial Reporting Standards, they "reserve their sovereign right to examine the suitability of any new standard before proceeding with its adoption."
http://www.afponline.org/mbr/res/mbr_news/ns_20080115_far.html

AFP'S COMMENT LETTER ON CONCEPT RELEASE ALLOWING U.S. ISSUERS TO PREPARE STATEMENTS IN ACCORDANCE WITH IFRS
November 2007
Secure, transparent and efficient global capital markets is a goal shared by AFP members and regulators. In order for U.S. corporations to stay competitive in the global markets, there must be a level playing field which does not disadvantage U. S. companies. An option that would allow U.S. issuers the option to prepare statements in accordance with International Financial Reporting Standards would help assure that U.S. companies are not placed at an unfair disadvantage in the global marketplace. Some U.S. companies are capable of making the transition now, including international U.S. companies that already are required to use IFRS in other jurisdictions. However, the accounting infrastructure for most domestic companies is not yet in place.
Read AFP's letter in PDF format.

SEC HOLDS TWO ROUNTABLES ON IFRS for DOMESTIC COMPANIES
December 19, 2007
The Securities and Exchange Commission (SEC) recently held two roundtables (Dec. 13 and 17) to discuss the concept release which discusses allowing U.S. Companies to report their financial information using International Financial Reporting Standards. The panel discussion revolved primarily around not if U.S. Companies should eventually move to IFRS but how and when they should move to IFRS.
http://www.afponline.org/mbr/res/mbr_news/ns_20071219_sec.html

SEC VOTES TO ADOPT FOREIGN REGISTRANT IFRS FINANCIAL STATEMENTS
November 19, 2007
On November 15, 2007 the Securities and Exchange Commission  voted to officially accept financial statements prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board  submitted by a foreign registrant without requiring a reconciliation to U.S. GAAP. The effective date is for filings after Nov. 15, 2007.
http://www.afponline.org/mbr/res/mbr_news/ns_20071119_far.html

NEW INTERNATIONAL ACCOUNTING MONITORING BODY
November 7, 2007
On November 7, 2007 the European Internal Market and Services Commissioner Charlie McCreevy, Financial Services Agency of Japan Commissioner Takafumi Sato, IOSCO Executive Committee Chairperson Jane Diplock and U.S. Securities and Exchange Commission Chairman Christopher Cox issued a combined statement proposing changes to strengthen the institutional framework of the International Accounting Standards Committee Foundation and encourage the Foundation's related efforts, while emphasizing the continued importance of an independent standard-setting process. IASC overseas the International Accounting Standards Board.
http://www.afponline.org/mbr/res/mbr_news/ns_20071107_iau.html

"RULE CHANGES WILL AFFECT MORE THAN LEDGER BOOKS"
ReportOnBusiness.com (Canada) (10/30/07)
(This abstract was adapted from an article published in ReportOnBusiness.com. )
According to two surveys conducted by Resources Global Professionals in 2006 and 2007, Canadian public companies have made significant progress over the past year in terms of preparing to adopt new international financial reporting standards (IFRS). In 2007, almost 80 percent of those polled reported having crafted a strategic plan for IFRS implementation, in comparison to 50 percent in 2006.
http://www.afponline.org/mbr/res/oh/2007/438_a_8.html

IS IT TIME TO SCRAP GAAP?
September 19, 2007
It may be time for the United States to scrap U.S. Generally Accepted Accounting Principles  and adopt International Financial Reporting Standards  just as over 100 other countries have done. While GAAP is the most developed set of reporting standards with years of standards work, it has also become like your grandmothers basement where decades of "things" have been accumulated and saved which are of little use, difficult to find and very cluttered.
http://www.afponline.org/mbr/res/mbr_news/ns_20070919_finac.html

ACCOUNTING STANDARDS FOR NON-PUBLIC COMPANIES DIVERGE, COMMITTEE FORMED,
August 1, 2007
(From the July/Aug 2007 issue of Exchange magazine)
While the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board are working on global accounting standards convergence for public companies, the FASB and the American Institute of Certified Public Accountants have begun work on a new divergence of accounting standards for non-public companies.
http://www.afponline.org/mbr/res/mbr_news/ns_20070801_far.html

SEC ISSUES CONCEPT RELEASE ON IFRS
July 27, 2007
The Securities and Exchange Commission took a big step on July 25, 2007 in approving a concept release to allow U.S. securities issuers to Prepare Financial Statements in Accordance with IFRS. The SEC, last month issued a draft release allowing foreign registrants to use IFRS without the required reconciliation.
http://www.afponline.org/mbr/res/mbr_news/ns_20070727_ifrss.html

SEC BOARD VOTES TO DROP FOREIGN PRIVATE ISSUERS RECONCILLIATION REQUIREMENT
June 22, 2007
The Securities and Exchange Commission voted on June 20 that foreign private issuers registered in the U.S. who prepare their financial statements in accordance with International Financial Reporting Standards will no longer be required to submit a reconciliation of their financial statements to U.S. generally accepted accounting principles (GAAP).
http://www.afponline.org/mbr/res/mbr_news/ns_20070622_sec.html

IASB AND FASB WRESTLE IN A TIME OF CONVERGENCE
May 21, 2007
(This article originally appeared in the May 2007 edition of AFP Exchange magazine.)
If your company operates in more than one country, wouldn't it be an advantage if only one set of reporting rules were required for all countries? A single common regulatory system would reduce time and the cost of reporting. It would also control the level of staff expertise that is needed.
http://www.afponline.org/mbr/res/mbr_news/ns_20070521_sox.html

ECONOMIC PANEL: GREENSPAN, BUFFETT, PAULSON, RUBIN, VOLKER, LEVITT, BLOOMBERG
April 19, 2007
(From the April 2007 edition of Exchange magazine)
Buffett, Greenspan and Paulson were just a few of the big names at a U.S. Treasury conference addressing the health of U.S. capital markets. With SOX, IFRS and lawsuits, they had plenty to talk about.
http://www.afponline.org/pub/res/news/ns_20070419_cf.html

SEC AND FINANCIAL RECONCILIATION
April 26, 2007
The Securities and Exchange Commission on April 24 announced a series of actions relating to the acceptance of financial reporting based on International Financial Reporting Standards as published by the International Accounting Standards Board. Currently, financial statements filed by foreign private issuers based on IFRS must prepare a reconciliation to U.S. Generally Accepted Accounting Principles.
http://www.afponline.org/mbr/res/mbr_news/ns_20070426_sec.html