International Financial Reporting Standards (IFRS) are the principles-based financial reporting requirements adhered to by more and more countries worldwide, which conversion to these standards well underway in many nations. They are international accounting standards and interpretations adopted by the International Accounting Standards Board (IASB). IFRS reflects a predominantly principles-based approach to developing accounting standards, rather than the predominantly rules-based approach commonly noted in other generally accepted accounting principles (GAAP).
Below you will find just a few examples of the KnowledgeLeader materials that address IFRS:
IFRS Conversion Questionnaire
The cost, effort and length of time required to convert to IFRS depend on several important factors and will vary for each organization. In evaluating these variables, consider the questions posed in this document.
IFRS or Country-Specific GAAP: Who’s on First? – Questionnaire
There are many practical issues surrounding the possible future use of IFRS by U.S. public companies or by entities in other countries using a different version of GAAP not conformed to IFRS. This questionnaire considers these issues and the ramifications of transitioning from country-specific GAAP to IFRS.
The Convergence of IFRS and U.S. GAAP – Key Changes in Accounting and Reporting for Lease Contracts
In August 2010, the FASB and the IASB published for public comment proposals that would change accounting and financial reporting for lease contracts. Among other requirements, lessees and lessors would need to estimate the lease term and contingent payments at the beginning of the lease and subsequently reassess these estimates throughout the lease term. These changes would entail more effort than under existing standards and have significant business implications. In this podcast, Protiviti Managing Director Charles Soranno discusses these important proposed changes in lease accounting and financial reporting.
The Convergence of IFRS and U.S. GAAP – Key Changes in Revenue Recognition for Technology Companies
Since the FASB and IASB are now close to agreement on the convergence of IFRS and U.S. GAAP revenue recognition standards, companies can begin to prepare for change. If, as expected, these standards are adopted, many enterprises – and technology companies, in particular – will need to adapt numerous processes and systems for revenue recognition. In this episode, Protiviti Managing Directors Steve Hobbs and Charles Soranno talk about critical changes in revenue recognition under IFRS and how technology companies must address them.
IFRS and U.S. GAAP Convergence Projects Update – Revenue Recognition
The FASB and the IASB have been working together since 2002 to make IFRS and U.S. GAAP compatible. They now are nearing completion on several major projects, including the convergence of revenue recognition standards. On June 24, 2010, the FASB issued an “exposure draft” of a proposed revenue recognition standard and planned to approve the final standard by mid-2011. If adopted, the board’s proposed contract-based approach to revenue recognition would replace current guidance under U.S. GAAP – including industry-specific revenue standards and interpretation – and align with a concurrently changed IFRS standard.
Guide to International Financial Reporting Standards
International Financial Reporting Standards (IFRS) are the principles-based financial reporting requirements adhered to by more and more countries worldwide. Conversion to these standards is well-underway in many nations, including Canada and Japan. There is now little doubt that IFRS is coming to the United States. The purpose of this publication is to assist organizations with this pending transition and provide answers and guidance to some of the many questions about the conversion to IFRS.
IFRS in Canada
This section of Protiviti's "Guide to International Financial Reporting Standards" addresses common questions concerning the impact and implications of the International Financial Reporting Standards (IFRS) in Canada. Topics covered include: What are the timelines for conversion to IFRS in Canada? Will the adoption of IFRS be required for organizations that are not publicly accountable enterprises (PAEs)? And, as a private company looking to be acquired by a public company, should we consider converting to IFRS?
IFRS in Japan
This section of Protiviti's "Guide to International Financial Reporting Standards" addresses common questions concerning the impact and implications of the International Financial Reporting Standards (IFRS) in Japan. Topics covered include: Is adoption of IFRS required or permitted in Japan? How will IFRS affect the statutory filings and consolidation reporting package for my company’s international reporting units, including its subsidiaries and affiliates? And, where can I find information on the differences between current Japanese GAAP and IFRS?
IFRS or Country-Specific GAAP: Who’s on First
There are practical issues surrounding the possible future use of International Financial Reporting Standards (IFRS) by U.S. public companies, or by entities in other countries using a different version of GAAP not conformed to IFRS. This issue of The Bulletin considers these issues and the ramifications of transitioning from country-specific GAAP to IFRS.
Impact and Implications of IFRS Conversion
This section of Protiviti's "Guide to International Financial Reporting Standards" addresses common questions concerning the impact and implications of the International Financial Reporting Standards (IFRS) conversion process. Topics covered are: Will IFRS reduce the current level of complexity that exists in financial reporting? Will IFRS improve the transparency of financial reporting? And, how will IFRS affect my organization’s business policies and procedures?
Internal Audit’s Role in a Successful IFRS Conversion
As the United States, along with every major capital market, moves toward International Financial Reporting Standards (IFRS), it is important for internal audit to sort out its role as a participant in the process. No matter what the SEC does, convergence seems likely to continue to occur and companies, public or private, should prepare for that eventuality. It is not too soon to focus on the process and the role internal audit can best play.
The Move to IFRS – Start Early to Save Significant Cost, Time and Effort
Without question, a transition to IFRS is not just an accounting issue. It has far-reaching business consequences affecting not just external financial reporting, but many other operations and functions. In this podcast, Protiviti Managing Directors Christopher Wright and Steve Hobbs discuss the current IFRS landscape in the United States and challenges related to the transition. Chris is the global leader of Protiviti's IFRS practice, while Steve is the firm's U.S. IFRS practice leader.
Overview of IFRS and Conversion
This section of Protiviti's "Guide to International Financial Reporting Standards" addresses common questions concerning International Financial Reporting Standards (IFRS) and the related conversion process. Topics covered are: Is IFRS, as issued by the IASB, the same for all companies and industries in all countries? What is the role of the audit committee in implementing IFRS? And, what major activities and steps should be considered when developing a conversion project plan?
Time to clear up misunderstandings about IFRS convergence
The timetable for U.S. companies to move from GAAP to IFRS is not set in stone, but such a transition is moving inexorably forward, either through conversion or convergence. While many companies have taken baby steps toward the changeover, a surprising number have yet to act. Such stasis may be due, in part, to a lot of “fuss” clouding the truth behind convergence. It is time to address those concerns and get a clear understanding of what is involved.
Accounting Research ManagerTM
The following accounting update summaries are provided courtesy of Accounting Research Manager, a subscription service that provides a timely and comprehensive online database of analytical accounting, auditing and SEC information as well as authoritative literature. KnowledgeLeader members are eligible to receive a 15% discount if they would like to subscribe to Accounting Research Manager.
Accounting Standards Board (ASB)
The Accounting Standards Board (ASB) is the standard setting body for the UK. Accounting standards developed by the ASB are contained in 'Financial Reporting Standards' (FRSs), summaries of which are available on the website. Other publications, press releases, and information about current activities can also be accessed on the site.
American Institute of Certified Public Accountants (AICPA)
The AICPA is the premier national professional association for CPAs in the USA. This site features accountancy news briefs, detailed AICPA product information, accounting, and auditing standards, technical documents, and selected full-text articles from AICPA magazines and newsletters.
Federal Accounting Standards Advisory Board (FASAB)
The FASAB promulgates accounting principles for federal government reporting entities. This website provides access to all publications issued by FASAB including exposure drafts, the volume of original pronouncements ("Codification"), newsletters, minutes and meeting agendas.
Financial Accounting Standards Board (FASB)
The FASB establishes and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. This site features a collection of resources covering the FASB, its activities, and its pronouncements. Users can access summaries and status updates on all statements, exposure drafts, Emerging Issues Task Force reports, and a number of additional resources.
Financial Reporting Council (FRC)
The FRC with its subsidiaries, the Accounting Standards Board (ASB) and the Financial Reporting Review Panel (FRRP), together make up an organisation whose purpose is to promote and secure good financial reporting in the UK. The FRC provides general policy guidance to its operational bodies, the ASB and the FRRP.
Institute of Chartered Accountants in Australia (ICAA)
The ICAA represents the Australian accounting profession and sets the technical and ethical standards for members along with current accounting and auditing standards. This site features full text accounting and auditing standards as well as technical documentation on business law, tax, and workers compensation.
Institute of Chartered Accountants in England & Wales (ICAEW)
The Institute is the UK’s premier accountancy body, and the largest in Europe, with over 124,000 members working in business and public practice in 142 different countries. The Institute's qualification is recognised around the world as a prestigious professional business qualification. Members of the Institute are entitled to the description Chartered Accountant and to the designatory letters ACA or FCA.
Institute of Chartered Accountants of Ontario
The Institute of Chartered Accountants of Ontario is the regulatory body of Ontario's Chartered Accountants and CA students. The Institute protects the public interest through the CA profession's high standards of qualification and its enforcement of the profession's rules of conduct. This site provides information about the Institute, information on accreditation, directories to other Canadian accounting organizations, and full-text of selected articles of the current issue of the journal Checkmark.
International Accounting Standards Committee
The International Accounting Standards Committee (IASC) is an independent private-sector body working to achieve uniformity in accounting principles around the world.
Public Company Accounting Oversight Board
The PCAOB is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. This site provides rule making updates including public comments for pronouncements.
U.S. Securities and Exchange Commission (SEC)
The primary mission of the SEC is to protect investors and maintain the integrity of the securities markets. The SEC requires public companies to disclose meaningful financial and other information to the public, which provides a common pool of knowledge for all investors to use to judge for themselves if a company's securities are a good investment.