PricewaterhouseCoopers releases new edition of “IFRS and US GAAP: Similarities and Differences” as SEC official reaffirms intention to address the roadmap

Publication highlights major accounting developments in the past year

NEW YORK, Sept. 23, 2009 –PricewaterhouseCoopers (PwC) today released an updated edition of its popular “IFRS and US GAAP: Similarities and Differences” guide. It is designed to improve companies’ understanding of the changes to, and major differences between, International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP).

Last year's edition was PwC’s most-downloaded publication.

The new guide is being released just as the Chief Accountant of the Securities and Exchange Commission ("SEC") has reaffirmed the agency’s focus on converging accounting standards: “Convergence of accounting standards and the proposed road map will be a priority for us in the weeks and months to follow,” James Kroeker, the newly appointed chief accountant at the SEC, was quoted as saying on Monday, September 14^th.

Nearly a dozen planned new standards will advance the convergence of US GAAP and IFRS by the end of 2011. Fundamental financial reporting areas expected to be affected by convergence include debt and equity, revenue, leasing, consolidation and financial instruments, among others. Moreover, the impact of the accounting changes caused by convergence will go well beyond financial reporting. Tax policy, mergers and acquisitions, financial planning, systems requirements and compensation structures are just some of the other areas that will be affected by the changes.

The 2009 edition of PwC's “IFRS and US GAAP: similarities and differences” guide alerts companies to the timing and scope of changes that US GAAP/IFRS convergence, and the likely adoption of IFRS in the United States, will bring about. It also provides context, showing how convergence with, or adoption of, IFRS has ramifications far beyond the accounting department.

“Financial reporting, both in the U.S. and internationally, has undergone considerable change since we last published our Similarities and Differences guide, and financial reporting will continue to see an unprecedented level of change over the next several years,” says Dave Kaplan, PwC’s International Accounting Leader. “We see the “Similarities and Differences” guide as a important tool for helping companies better understand the implications of US GAAP/IFRS differences,” Kaplan added.

The guide has been updated to reflect the major changes related to market conditions and new accounting standards over the past year, with an additional overview of the new IFRS for Small and Medium-sized Entities (IFRS for SMEs) standard. Further updates –– include:

Commentary and insight with respect to recent and proposed guidance, including developments pertaining to the overall convergence agenda;
Report on the end-state of the US GAAP codification project;
More detailed analysis of current differences between the frameworks including an assessment of the impact embodied within the differences; and
Updates incorporating authoritative standards and interpretive guidance issued through June 30, 2009.

The SEC’s proposed roadmap for adopting IFRS slates initial adoption for 2014, though that date is apt to slide back somewhat as the SEC continues to focus on economic and regulatory structural concerns, as well as the process of change. Meanwhile, the global adoption of IFRS will continue to affect U.S. companies for some time, whether through business dealings with non-U.S. customers and vendors who use IFRS, or continued IFRS adoption by subsidiaries.

While an important issue for public companies, the use of IFRS, or IFRS for SMEs, may also be worth considering by private companies, particularly those with international operations

Guided by the 2009 edition of IFRS and US GAAP: Similarities and Differences, both public and private organizations will gain a greater understanding of what their next steps should be to ensure they have allowed themselves sufficient time to prepare for the transition. For more on PwC's IFRS resources, visit www.pwc.com/USifrs.

PwC is also assisting companies in their understanding of this new standard and the recommended responses with a webcast today, Wednesday, September 23, from 2:00 p.m. to 3:00 p.m. (ET). A PwC panel of specialists will discuss the IASB's release of IFRS for SMEs and continued global adoption of IFRS for statutory reporting purposes, focusing on the impacts for U.S. companies.

To register for and view the webcast, please click on the following link:
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