Friday, September 12, 2008

IASB/FASB Convergence by 2011: Appropriate Speed or Rushing In?

The International and (U.S.) Financial Accounting Standards Boards have revised their memo of understanding and pushed the goal of convergence between international financial reporting standards (IFRS) and U. S. generally accepted accounting principles (GAAP) forward to 2011. A catalyst for the revision was an recently-announced SEC roadmap which sets a goal for converting U. S. public company financials to IFRS by 2014. IASB Chairman David Tweedle (remember that name) indicates that the U. S. accounting community is not alone: Canada, India, Japan and Korea are also planning to achieve convergence by 2011. Key issues to address in accomplishing convergence include leases, revenue recognition and preparation (form?) of financial statements.

Probably very scary news for auditors and for financial/accounting executives of publicly traded companies; basically a three-year window exists to get XBRL adopted AND prepare for IFRS. Not sure whether there will be tax implications to convergence, but I certainly would not surprised if there were.


Blogger The IFRS Exorcist © said...

You asked about tax implications of IFRS adoption. There was a good discussion on this in an E&Y webcast.
You can access this through my blog IFRSCanada: The devils is in the details.
I also have some other articles on IFRS and tax - please search. We are adopting IFRS in 2011. I just heard Mexico is adopting IFRS in 2012.

12:43 PM  

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