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.

Key developments for IFRS

  • 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.

Why it's important

  • 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 - 2014 edition

10/20/14 | US GAAP and IFRS Convergence

PwC's publication will help you develop a broad understanding of the major differences between IFRS and US GAAP. It also contains insight on recent and proposed guidance, including developments pertaining to the overall convergence agenda. Read more

IFRS adoption by country

10/14/14 | US GAAP & IFRS Convergence

IFRS news - March 2015

3/9/15 | Assurance services
  • IFRS news
    IFRS news - March 2015

    3/9/15 | Assurance services

    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.

  • Video
    Understanding IFRS 15: Revenue Recognition


    Paul Feetham, PwC Accounting Advisory Services, discusses IFRS 15, the Revenue Recognition standard, its impact, and how to overcome implementation challenges.

  • IFRS news
    IFRS news - February 2015

    2/5/15 | Assurance services

    This issue of IFRS news looks at (1) financial volatility, (2) highlights from the Revenue Transition Resource Group January meeting, (3) IFRS in the EU, (4) disclosure initiative, (5) employee benefits, and (6) Q&As: written options.

  • In brief
    In brief: EU to extend reporting on environmental, social, and governance matters

    2/4/15 | Assurance services

    Certain EU subsidiaries of U.S. multinationals will be required to disclose environmental, social and governance matters.

  • In brief
    In brief: EC investigates EU member state tax incentives as "state aid"

    1/23/15 | Assurance services

    The European Commission's challenge to member state tax incentives may have financial reporting implications.

  • In brief
    In brief: IAASB issues final standards to improve auditor's report

    1/21/15 | Assurance services

    The IAASB standards apply to audits conducted in accordance with international standards, not PCAOB or AICPA standards.

  • Webcast
    Healthcare Higher Education and Not-For-Profit Series: Hot topics and technical updates impacting accounting and financial reporting - January 29, 2015


    We are pleased to invite you to watch the recording of PwC's quarterly webcast series focusing on emerging accounting developments affecting not-for-profit organizations. This presentation is dedicted to the FASB standard setting developments that have occurred since our October webcast. We will be doing a refresher on not-for-profit business combinations accounting, cover A-133 regulatory developments, and discuss developments related to FASB projects impacting not-for-profit entities, including the not-for-profit financial statement project.

  • IFRS news
    IFRS news - December 2014/January 2015

    12/23/14 | Assurance services

    This issue of IFRS news looks at (1) IASB tentative agenda rejections on joint arrangements, (2) new revenue standard, (3) Top ten reminders for 2014 year-end reporting, (4) Investment entities: Amendments to IFRS 10 and IAS 28, (5) IAS 1 narrow scope amendments, (6) IFRS 2 proposed amendments, (7) IAS 7 proposed amendments, and (8) Q&As: vesting conditions.

  • Tax accounting insights
    Share-based compensation: understanding the tax accounting

    12/4/14 | Tax accounting services

    In this insight we provide a refresher of the tax accounting guidance for share-based compensation under US GAAP and IFRS

  • Webcast
    Healthcare, Higher Education, and Nonprofit: Year end review and 2015 outlook with perspectives from the IRS webcast - December 17, 2014


    Please join PwC for a "Year End Review and 2015 Outlook with Perspectives from the IRS" as our tax specialists and IRS officials, Sunita Lough, Commissioner of Tax-Exempt and Government Entities, and Eric San Juan, Senior Technical Advisor to the Commissioner TE/GE, review the past year, discuss the IRS restructuring of the TE/GE Division, provide an outlook of potential future initiatives from the IRS, and highlight other issues impacting universities, healthcare providers, and other tax-exempt organizations.

  • PwC and Financial Executives Research Foundation (FERF) report: The New Revenue Recognition Standard: Are you Prepared for Change?

    11/18/14 | Assurance services

    In this survey report, PwC and FERF teamed up to gain an understanding of where companies are relative to implementing new revenue recognition standard. While many companies do not know what the implementation journey fully looks like yet in terms of implementation processes, costs, timing, contract reviews, IT and systems, operations, quantification and reporting, they understand they should start preparing now.

  • IFRS news
    IFRS news - November 2014

    11/10/14 | Assurance services

    This issue of IFRS news looks at (1) Revenue TRG tackles performance obligations and licenses, (2) new EFRAG to strengthen European influence, (3) ESMA focuses on consolidation, joint arrangements and deferred tax, (4) leases, (5) conceptual framework, (6) research agenda, and (7) Q&As: underlying.

  • Accounting guides
    IFRS and US GAAP: similarities and differences - 2014 edition

    10/20/14 | US GAAP & IFRS Convergence

    PwC's publication will help you develop a broad understanding of the major differences between IFRS and US GAAP. It also contains insight on recent and proposed guidance, including developments pertaining to the overall convergence agenda.

  • IFRS adoption by country

    10/14/14 | US GAAP & IFRS Convergence

    This PwC publication includes a map and summarizes by country which countries have adopted IFRS.

  • IFRS news
    IFRS news - October 2014

    10/9/14 | Assurance services

    This issue of IFRS news looks at (1) IASB takes debt versus equity off the table, and (2) IASB continues to hold line on a single model for leases, (3) Hilary Eastman discusses why it’s time to stop talking and start doing, (4) consultation on IFRS in the EU, (5) IFRS 10 and IAS 28 amendments, (6) Annual Improvements 2012-14, (7) ED on fair value – price times quantity, (8) Rate regulated activities DP, (9) Disclosure initiative, (10) Insurance redeliberations, and (11) Q&As: ‘T’ is for translation of foreign currencies.

  • IFRS news
    IFRS news - September 2014

    9/9/14 | Assurance services

    This issue of IFRS news looks at (1) alternative performance measures, (2) discussion of IFRIC agenda rejections also known as "Not-an-IFRIC," (3) IASB spotlight on IASB member Amaro Gomes, (4) IAS 27 narrow scope amendment, (5) exposure draft on IAS 12 narrow scope amendment, (6) IASB workplan, and (7) Q&As: service concession arrangements.

  • IFRS news
    IFRS news - July/August 2014

    8/11/14 | Assurance services

    This issue of IFRS news looks at (1) IFRS 9 - the IASB's new standard on financial instruments, (2) Revenue Transition Resource Group (TRG) starts discussion on IFRS 15, (3) ESMA reports on accounting for business combinations under IFRS 3, (4) IAS 41 and IAS 16 amendments on bearer plants, (5) EU endorses IFRIC 21, (6) leasing redeliberations, (7) disclosure initiative, (8) conceptual framework discussions, and (9) Q&As: related parties.

  • Financial reporting in the power and utilities industry: International Financial Reporting Standards

    6/20/14 | Power & utilities

    The move to International Financial Reporting Standards (IFRS) is advancing the transparency and comparability of financial statements around the world. Many countries now require companies to prepare their financial statements in accordance with IFRS.

  • IFRS news
    IFRS news - June 2014

    6/5/14 | Assurance services

    This issue of IFRS news looks at (1) the IASB and FASB's new revenue standard, (2) IFRS 11, Joint arrangements, (3) IAS 16 and IAS 38 amendments, (4) leasing redeliberations, (5) conceptual framework discussions, (6) IASB equity accounting research project, (7) uncertain tax positions, and (8) Q&As: qualitative disclosures about risk.

  • In brief
    In brief: Revenue recognition - The future is here

    5/28/14 | Assurance services

    The FASB and IASB have issued their long-awaited converged revenue standard. Some change is expected for most entities.

  • IFRS news
    IFRS news - May 2014

    5/8/14 | Assurance services

    This issue of IFRS news looks at (1) IASB’s discussion paper on accounting for macro hedging, (2) integrated reporting, (3) IFRS in the US, (4) foreign exchange - a moving target, (5) revenue standard expected in second half of May, (6) IASB’s research programme, (7) leasing deliberations, and (8) Q&As: perpetual debt.

  • IFRS news
    IFRS news - April 2014

    4/7/14 | Assurance services

    This issue of IFRS news looks at (1) leases – convergence is no longer a priority, (2) IFRS 10 practice issues, (3) OCI - feedback from the Conceptual Framework Discussion Paper, (4) EU backs IFRS Foundation, (5) exposure draft on IAS 1 narrow scope amendments, (6) joint arrangement implementation issues, (7) equity method in separate financial statements, and (8) Q&As: Onerous contracts.

  • IFRS news
    IFRS news - March 2014

    3/10/14 | Assurance services

    This issue of IFRS news looks at (1) Change on the horizon - Peter Hogarth looks at recent developments, (2) Olivier Schérer gives his perspective on the post implementation review, (3) Debt versus equity - regulatory reform adds fuel to the age old debate, (4) Convergence out of sight as IASB and FASB diverge, (5) IFRS 9 effective date, (6) New revenue standard delayed, (7) IFRS Workplan, (8) IC stops debate on ‘higher of’ plans (9) Q&As: ‘N’ is for Non-controlling interests.

  • IFRS in the US: The importance of being financially bilingual

    3/5/14 | US GAAP & IFRS Convergence

    US public companies will not be required to adopt IFRS in the foreseeable future, but it’s increasingly important for a US capital market participant to be financially bilingual.

  • Corporate Governance Series
    Shareholder questions: Management's considerations for 2014 annual meetings

    3/3/14 | Assurance services

    This PwC publication is intended to help management and the board of directors of public companies prepare for the annual meeting of shareholders. It contains example questions on topics that may be top-of-mind for shareholders, along with background information and suggested actions for management’s consideration.

  • Power and Utilities Alert 2014-4: Accounting for rate-regulated activities under IFRS

    2/10/14 | Power & utilities

    The International Accounting Standards Board (IASB) issued International Financial Reporting Standard 14, Regulatory Deferral Accounts (IFRS 14), an interim standard on the accounting for certain balances that arise from rate-regulated activities.

  • PwC comment letter (IASB)
    PwC comments on IFRS Interpretations Committee's tentative agenda decision: IFRS 2–Share-based Payment

    2/6/14 | Global accounting consulting services

    In this comment letter, we respond to the boards tentative agenda decision: IFRS 2, Share-based payment – price difference between the institutional offer price and the retail offer price for shares in an initial public offering. We support the committee’s decision not to take this question onto the agenda but not for the reasons given. We are concerned that the reasons given for the agenda decision will increase diversity in practice regarding the application of IFRS 2 paragraph 13A and may also lead to diversity in the application of IFRS 13.

  • PwC comment letter (IASB)
    PwC comments on the IASB's proposed amendments to IAS 27 to allow equity method accounting

    2/6/14 | Global accounting consulting services

    In this comment letter, we do not object to the board’s proposal to restore the use of the equity method as one of the options to account for investments in subsidiaries, joint ventures and associates in an entity’s separate financial statements. However, we do not support the requirement for retrospective application of the exposure draft nor the proposed consequential amendment to IAS 28, Investments in Associates and Joint Ventures.

  • US GAAP: Issues and solutions for pharmaceuticals and life sciences industry

    11/20/13 | Pharmaceuticals & life science

    This publication highlights factors the industry should consider and provides guidance on the most pertinent accounting solutions under US GAAP. The solutions presented are meant to provide a framework for determining the appropriate accounting answer for general solutions.

  • Power and Utilities Alert 2013-7: Accounting for rate-regulated activities under IFRS

    8/27/13 | Power & utilities

    The IASB’s Consultative Group met in July to discuss responses to the Request for Information (RFI) on the rate regulation project.

  • Power and Utilities Alert 2013-6: Accounting for rate-regulated activities under IFRS

    4/30/13 | Power & utilities

    The IASB issued a Request for Information related to its project on rate-regulated activities, as well an interim standard exposure draft.

  • Video
    IFRS: M&A perspectives

    9/17/12 | Assurance services

    IFRS: M&A perspectives

  • Video
    IFRS: The SEC's report and looking ahead

    9/17/12 | Assurance services

    IFRS: The SEC's report and looking ahead

  • Dataline
    Dataline: SEC Staff releases its final report on its IFRS Work Plan

    8/8/12 | Assurance services

    The SEC Staff recently published its final Staff Report regarding the potential impact of incorporation of IFRS into the US financial reporting system. This Dataline looks at the six key areas covered in the Staff Report and offers our observations.

  • Tax accounting insights
    Stock option awards under IFRS: Tax accounting impacts earnings

    7/7/08 | Tax accounting services

    PwC analysis of the potential impact of IFRS on shared-payment stock plans. An IFRS conversion may affect cash taxes and affect financial reporting systems and processes.