IFRS in the US
Although a mandatory (or voluntary) change to IFRS for U.S. public companies is no longer 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; (iii) the IFRS reporting requirements of non-U.S. subsidiaries; and (iv) the U.S. GAAP changes resulting from the boards’ coordinated efforts. Being accounting “bilingual” in the U.S. is increasingly important.
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 regulatory authorities have made public statements about the intention to adopt from 2016-2017; and (iv) China, which intends to fully converge at some undefined future date.
- In July 2012, the staff of the SEC’s Office of the Chief Accountant issued its final report on its IFRS work plan intended to aid the SEC in evaluating the implications of incorporating IFRS into the U.S. reporting system. The report did not include a recommendation from the staff on whether, when, or how IFRS may be incorporated into the U.S. financial reporting system. The report also did not include any next steps toward a SEC decision on IFRS.
- The staff found little support for adopting IFRS as authoritative guidance in the U.S., and outright adoption would not be consistent with the method of incorporation followed by other major capital markets. However, the staff did find substantial support for exploring other methods of incorporating IFRS that demonstrate a U.S. commitment to the objective of a single set of high-quality, global accounting standards.
- 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.” On the other hand, former SEC Chairman Christopher Cox, who once was a proponent of IFRS, recently gave a speech stating that he no longer believes that it is possible for the U.S. to adopt IFRS.
- 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.
What's next for IFRS in the US
- 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. It is relevant to many U.S. capital-market participants because of the amount of U.S. capital invested abroad in companies preparing financial statements based on the IFRS framework. 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 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.
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10/14/14 | US GAAP & IFRS Convergence
This PwC publication includes a map and summarizes by country which countries have adopted IFRS.
WebcastHealthcare Higher Education and Not-For-Profit Series - Hot Topics and Technical Updates Impacting Accounting and Financial Reporting - October 23, 2014
This webcast will cover FASB standard setting developments that have occurred since our July webcast. Among other matters, we will cover developments related to the FASB/IASB convergence projects, including information related to the new revenue recognition standard, and an update on FASB projects impacting not-for-profit entities, including the not-for-profit financial statement project. As always, the focus is on not-for-profit organizations that apply FASB standards, with an emphasis on healthcare and higher education institutions.
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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.
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9/9/14 | Assurance services
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8/11/14 | Assurance services
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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.
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5/28/14 | Assurance services
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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.
WebcastHot topics and technical updates impacting accounting and financial reporting for Healthcare, Higher Education and Not-for-Profit webcast – April 24, 2014
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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.
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3/3/14 | Assurance services
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2/10/14 | Power & utilities
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2/6/14 | Global accounting consulting services
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2/6/14 | Global accounting consulting services
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11/1/13 | Assurance services
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8/27/13 | Power & utilities
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4/30/13 | Power & utilities
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9/17/12 | Assurance services
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1/9/11 | Tax accounting services
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7/7/08 | Tax accounting services
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