IFRS in the US

Most 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 US, with no current plans to change; (ii) Japan, where voluntary adoption is allowed, and while there is a Japanese government agenda item to expand use of IFRS in Japan, currently no mandatory transition date has been established; (iii) India, which announced in January 2015 its final roadmap requiring the use over the next several years of Indian accounting standards that are significantly converged with IFRS; and (iv) China, which intends to fully converge at some undefined future date.

  • The discussion about the use of IFRS in the US continues. In public speeches over the past year, Chief Accountant of the SEC’s Office of the Chief Accountant, James Schnurr, discussed the potential for further incorporating IFRS into the US capital markets. Recently, Schnurr indicated that he is discussing a proposal with the Commission to allow domestic issuers to provide IFRS-based information as a supplement to US GAAP financial statements without requiring reconciliation. Although Schnurr has acknowledged that there is continued support for the objective of a single set of high–quality, globally accepted accounting standards, he indicated that there is little support for the SEC to provide an option allowing domestic companies to prepare their financial statements under IFRS, and there is virtually no support to have the SEC mandate IFRS for all companies. Schnurr continues to believe that for the foreseeable future, continued collaboration among the IASB, the FASB, the IFRS Foundation (the trustees of the IASB), and the Financial Accounting Foundation (the trustees of the FASB) is the only realistic path to further the objective of a single set of high-quality, global accounting standards. Accordingly, he has stated that how these entities decide to interact in the future is critical to this objective.

  • We believe that the "era" of convergence is nearing an end as the boards shift attention to their individual agendas.    

  • Although the era of convergence is almost at an end, the impacts of the accounting changes resulting from the boards’ joint efforts have been significant, and the two accounting frameworks have moved closer together during this time (e.g., the new revenue guidance). Although the boards are no longer formally working together in most areas, differences between the two frameworks continue to be removed. A recent example is the US GAAP change relating to the reporting of discontinued operations. The new guidance is now substantially aligned with IFRS.
  • Although a mandatory change to IFRS for US public companies will not occur in the foreseeable future, IFRS is increasingly relevant to many US companies, big and small, public and non-public, because of: (i) cross-border, M&A activity; (ii) the reporting needs of non-US stakeholders; and (iii) the IFRS reporting requirements of non-US subsidiaries. Being financially “bilingual” in the US is increasingly important.

IFRS and US GAAP: similarities and differences - 2015 edition

9/17/14

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.

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The EU referendum - impact on accounting and reporting - Webcast replay

07/28/16

This recorded webcast discusses the immediate impact of the EU referendum on financial reporting and provide an overview of some of the potential issues and relevant guidance under IFRS.

IFRS15: An accounting change with profound impacts for communications operators–from the P&L to operations, pricing and marketing

07/12/16

The IFRS15 accounting standard on revenue recognition brings profound implications for communications companies and operations.

IFRS news - July 2016

07/11/16

This issue of IFRS news looks at alternative performance measures, definition of a business, interim reporting reminders, and more.

IFRS news - June 2016

06/07/16

This issue of IFRS news looks at highlights from our recent global investor survey, the new revenue standard and the insurance industry, hedge accounting questions and answers, and more.

IFRS news - May 2016

05/05/16

This issue of IFRS news looks at (1) final changes to IFRS 15 – an overview, (2) regulator focus - what can we learn from the ESMA report?, (3) IFRS 8 Segment Reporting - key things to look out for, (4) leases lab - how to implement the new guidance?, (5) insurance and IFRS 9, (6) conceptual framework, (7) disclosure Initiative, and (8) IC rejections - IAS 18.

In brief: IASB publishes amendments to the new revenue standard

04/12/16

IASB issued its amendments to the new revenue standard, which differ in some respects from those proposed by the FASB.

IFRS news - April 2016

04/06/16

This issue of IFRS news looks at (1) the suitability of cash flows and the discount rate used in impairment testing, (2) issues the IFRS Interpretations Committee rejected at its March meeting, (3) the impact of IFRS 16, Leases, on the pharmaceutical industry, (4) topics discussed at the IASB’s March 2016 meeting, and (5) the practical implications of IFRS Interpretations Committee rejections related to IAS 17, Leases.

IFRS news - March 2016

03/28/16

This issue of IFRS news looks at (1) alternative performance measures - an analysis of the current status, (2) more guidance for banks - IFRS 9 impairment, (3) IAS 7 amendment - how to implement new guidance, (4) insurance contracts, (5) goodwill and impairment, (6) interests in associates and joint ventures, (7) non-current liabilities, (8) FICE, (9) IC rejections - IAS 16, and (10) the PwC leases library.

IFRS news - February 2016

02/08/16

This issue of IFRS news looks at (1) IFRS 16 Leases: a glance at the new standard, (2) Narrow-scope amendments to IAS 12, Recognition of deferred tax assets on unrealised losses, (3) Current IC rejections, (4) Various topics, (5) P*Q crashes, (6) Insurance contracts, (7) Revenue from contracts with customers, (8) Measurement of interests in associates and joint ventures, and (9) IC rejections - IAS 12.

IFRS in the US

01/29/16

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. PwC provides the latest developments and helpful publications on IFRS adoption & convergence in the US.