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
In briefIn 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 briefIn 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.
WebcastHealthcare Higher Education and Not-For-Profit Series: Hot topics and technical updates impacting accounting and financial reporting - January 29, 2015
We invite you to join PwC on January 29th for the next webcast in this series. 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 newsIFRS 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 insightsShare-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
WebcastHealthcare, 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 newsIFRS 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 guidesIFRS 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 newsIFRS 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 newsIFRS 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 newsIFRS 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 newsIFRS 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 briefIn 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 newsIFRS 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 newsIFRS 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 newsIFRS 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 SeriesShareholder 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.
VideoIFRS: M&A perspectives
9/17/12 | Assurance services
IFRS: M&A perspectives
VideoIFRS: The SEC's report and looking ahead
9/17/12 | Assurance services
IFRS: The SEC's report and looking ahead
DatalineDataline: 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 insightsIFRS, the current landscape for US tax executives
1/9/11 | Tax accounting services
The potential transition to IFRS in the United States has been an ongoing focus of the SEC over the past several years. As part of their current workplan, the SEC is analyzing the impact of IFRS on US issuers and whether, when, and how to incorporate IFRS into the US financial reporting system. In this Tax accounting insights, we inform US tax executives on the current landscape of IFRS, including the key tax considerations that may arise in the near-term
Tax accounting insightsStock 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.