Examining IFRS for the US metals industry

November 2010
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The United States is about to adopt a new accounting language. International Financial Reporting Standards (IFRS) will soon replace US generally accepted accounting principles (US GAAP), and global and domestic companies are now preparing for this significant implementation. Our experience shows the transition can be quite complex for metals companies, extending beyond finance and accounting functions to involve human resources, investor relations, business development, tax, treasury, and information technology.

To help provide insight on the impact and opportunities relating to IFRS, PwC is pleased to share with you a new report, Forging solutions: Examining international financial reporting standards for the metals industry. This deep-dive report provides an overview of the significant accounting differences between IFRS and US-GAAP, and it delves into how metals companies can best prepare for conversion. This publication addresses some of the following issues:

  • convergence of key areas of US GAAP and IFRS
  • ongoing adoption of IFRS by overseas subsidiaries and competitors
  • continued influence of IFRS on foreign counterparties’ structuring of transactions
  • ultimate adoption of IFRS in the United States.

IFRS will impact the metals industry as a whole, but the specific impact of a transition will vary from one company to another. We believe that by using the insights gained from this paper, executives will have a better understanding of the potential impact of IFRS on their industry and individual companies.