IFRS in the US

While the near-term use of IFRS in the US by domestic public companies will not be required, IFRS remains very relevant to many US businesses. Companies are and will be affected by IFRS at varying times and degrees of magnitude, driven by factors such as size, industry, geography, M&A activity, and global expansion. Despite an unclear SEC adoption timeline, we believe the impact of accounting changes resulting from the FASB's and IASB's joint efforts will be significant and will have broad based implications.

  • Many of the world’s capital markets now require IFRS, or some form thereof, for financial statements of public-interest entities. The remaining major capital markets without an IFRS mandate are (i) the U.S., with no current plans to change; (ii) Japan, where voluntary adoption is allowed, but no mandatory transition date has been established; (iii) India, where it is expected that regulatory authorities will mandate adoption in the next few years; and (iv) China, which intends to fully converge at some undefined future date.
  • The discussion about the use of IFRS in the U.S. continues. In a speech in May 2014, SEC Chair Mary Jo White stated that considering whether to incorporate IFRS into the U.S. financial reporting system continues to be a priority and she “hopes to able to say more in the relatively near future.” At the AICPA National Conference on Current SEC and PCAOB Developments in December 2014, Chief Accountant, Jim Schnurr discussed a possible alternative to allow U.S. companies to voluntarily provide IFRS financial information as a supplement to its U.S. GAAP financial statements.
  • In the meantime, the FASB and the IASB continue to work together on some aspects of the remaining convergence project on leasing. We believe that the "era" of convergence is nearing an end as the boards shift attention to their individual agendas.
  • Although a mandatory change to IFRS for U.S. public companies will not occur in the foreseeable future, IFRS is increasingly relevant to many U.S. companies, big and small, public and non-public, because of: (i) cross-border, M&A activity; (ii) the reporting needs of non-U.S. stakeholders; and (iii) the IFRS reporting requirements of non-U.S. subsidiaries. Being financially “bilingual” in the U.S. is increasingly important.

IFRS and US GAAP: similarities and differences - 2015 edition


This publication provides a broad understanding of the major differences between IFRS and US GAAP, as well as insight into the level of change on the horizon.

Read more

Update on IFRS 15: Revenue recognition


PwC's Paul Feetham provides an update on the new revenue standard and the impact of the one year deferral.

IFRS news - September 2015


This issue of IFRS news looks at (1) impairment through the eyes of regulators, (2) IFRS research is separating the facts from the hype, (3) negative interest rates, not just for banks!, (4) Workplan 2016-2020, and (5) IFRS rejections in short – IAS 7.

IFRS and US GAAP: similarities and differences - 2015 edition


This publication provides a broad understanding of the major differences between IFRS and US GAAP, as well as insight into the level of change on the horizon.

IFRS 9 - impairment for banking


PwC Assurance Partners Ryan Leopold and Chris Wood discuss the new financial instruments standard and how it impacts the banking industry.

IFRS news - July/August 2015


This issue of IFRS news includes the following topics: (1) proposed amendment to IFRS 15, Revenue recognition, (2) Exposure Draft proposing amendments to IAS 19 and IFRIC 14, Pension accounting, (3) TRG continues to debate implementation issues related to the new revenue standard, (4) Insurance and IFRS 9, (5) IFRS implementation issues, (6) Fair Value Measurement, (7) IFRS 3 post implementation review, (8) Financial Instruments with characteristics of equity, and (9) IFRIC rejections related to IAS 2.

IFRS news - June 2015


This issue of IFRS news looks at (1) IASB issues exposure draft Conceptual Framework exposure draft, (2) segment disclosures: results of IFRS 8 Post-Implementation Review project, (3) IFRS 9 Disclosures, (4) IFRS 15 clarifications, (5) disclosure initiative, (6) FICE research project, and (7) NIFRICs by numbers: IAS 1.

IFRS news - May 2015


This issue of IFRS news looks at (1) IASB propose to defer effective date of IFRS 15, (2) IASB research project gains steam, (3) Disclosure initiative, (4) Annual improvements, (5) Fair value of quoted instruments, and (4) Q&As: ‘Z’ is Zoos and IAS 41.

PwC comments on IASB's proposed amendments to share-based payment standard


In our letter, we explain our views on net settled awards, measurement of cash settled awards, and transition guidance.

IFRS news - April 2015


This issue of IFRS news looks at (1) revenue recognition: proposed clarifications and expedients; FASB deferral, (2) IASB approves new leasing standard for ballot, (3) IFRS 15 implementation issues, (4) IC discussion of IFRS 11, (5) leasing project, (6) disclosure initiative, (7) conceptual framework, and (8) Q&As: yields.

IFRS news - March 2015


This issue of IFRS news looks at (1) new revenue standard - convergence under pressure, (2) investor view - accounting policies, (3) ED on IAS 1 amendment, (4) leasing project, (5) rate regulated activities, and (6) Q&As: exiting a business.