International Financial Reporting Standards (IFRS) are the principles-based financial reporting requirements adhered to by more and more countries worldwide, which conversion to these standards well underway in many nations. They are international accounting standards and interpretations adopted by the International Accounting Standards Board (IASB). IFRS reflects a predominantly principles-based approach to developing accounting standards, rather than the predominantly rules-based approach commonly noted in other generally accepted accounting principles (GAAP).

Below you will find just a few examples of the KnowledgeLeader materials that address IFRS:

• Publications
• External Resources

Publications

IFRS and U.S. GAAP Convergence Projects Update – Revenue Recognition

The FASB and the IASB have been working together since 2002 to make IFRS and U.S. GAAP compatible. They now are nearing completion on several major projects, including the convergence of revenue recognition standards. On June 24, 2010, the FASB issued an “exposure draft” of a proposed revenue recognition standard and planned to approve the final standard by mid-2011. If adopted, the board’s proposed contract-based approach to revenue recognition would replace current guidance under U.S. GAAP – including industry-specific revenue standards and interpretation – and align with a concurrently changed IFRS standard.

Guide to International Financial Reporting Standards

International Financial Reporting Standards (IFRS) are the principles-based financial reporting requirements adhered to by more and more countries worldwide. Conversion to these standards is well-underway in many nations, including Canada and Japan. There is now little doubt that IFRS is coming to the United States. The purpose of this publication is to assist organizations with this pending transition and provide answers and guidance to some of the many questions about the conversion to IFRS.

IFRS or Country-Specific GAAP: Who’s on First

There are practical issues surrounding the possible future use of International Financial Reporting Standards (IFRS) by U.S. public companies, or by entities in other countries using a different version of GAAP not conformed to IFRS. This issue of The Bulletin considers these issues and the ramifications of transitioning from country-specific GAAP to IFRS.

Internal Audit’s Role in a Successful IFRS Conversion

As the United States, along with every major capital market, moves toward International Financial Reporting Standards (IFRS), it is important for internal audit to sort out its role as a participant in the process. No matter what the SEC does, convergence seems likely to continue to occur and companies, public or private, should prepare for that eventuality. It is not too soon to focus on the process and the role internal audit can best play.

External Resources

Accounting Research Manager TM

The following accounting update summaries are provided courtesy of Accounting Research Manager, a subscription service that provides a timely and comprehensive online database of analytical accounting, auditing and SEC information as well as authoritative literature. KnowledgeLeader members are eligible to receive a 15% discount if they would like to subscribe to Accounting Research Manager.

Accounting Standards Board (ASB)

The Accounting Standards Board (ASB) is the standard setting body for the UK. Accounting standards developed by the ASB are contained in ‘Financial Reporting Standards’ (FRSs), summaries of which are available on the website. Other publications, press releases, and information about current activities can also be accessed on the site.

American Institute of Certified Public Accountants (AICPA)

The AICPA is the premier national professional association for CPAs in the USA. This site features accountancy news briefs, detailed AICPA product information, accounting, and auditing standards, technical documents, and selected full-text articles from AICPA magazines and newsletters.

Federal Accounting Standards Advisory Board (FASAB)

The FASAB promulgates accounting principles for federal government reporting entities. This website provides access to all publications issued by FASAB including exposure drafts, the volume of original pronouncements (Codification), newsletters, minutes and meeting agendas.

Financial Accounting Standards Board (FASB)

The FASB establishes and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. This site features a collection of resources covering the FASB, its activities, and its pronouncements. Users can access summaries and status updates on all statements, exposure drafts, Emerging Issues Task Force reports, and a number of additional resources.

Financial Reporting Council (FRC)

The FRC with its subsidiaries, the Accounting Standards Board (ASB) and the Financial Reporting Review Panel (FRRP), together make up an organisation whose purpose is to promote and secure good financial reporting in the UK. The FRC provides general policy guidance to its operational bodies, the ASB and the FRRP.

Institute of Chartered Accountants in Australia (ICAA)

The ICAA represents the Australian accounting profession and sets the technical and ethical standards for members along with current accounting and auditing standards. This site features full text accounting and auditing standards as well as technical documentation on business law, tax, and workers compensation.

Institute of Chartered Accountants in England & Wales (ICAEW)

The Institute is the UK’s premier accountancy body, and the largest in Europe, with over 124,000 members working in business and public practice in 142 different countries. The Institute’s qualification is recognised around the world as a prestigious professional business qualification. Members of the Institute are entitled to the description Chartered Accountant and to the designatory letters ACA or FCA.

Institute of Chartered Accountants of Ontario

The Institute of Chartered Accountants of Ontario is the regulatory body of Ontario’s Chartered Accountants and CA students. The Institute protects the public interest through the CA profession’s high standards of qualification and its enforcement of the profession’s rules of conduct. This site provides information about the Institute, information on accreditation, directories to other Canadian accounting organizations, and full-text of selected articles of the current issue of the journal Checkmark.

International Accounting Standards Committee

The International Accounting Standards Committee (IASC) is an independent private-sector body working to achieve uniformity in accounting principles around the world.

Public Company Accounting Oversight Board

The PCAOB is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. This site provides rule making updates including public comments for pronouncements.

U.S. Securities and Exchange Commission (SEC)

The primary mission of the SEC is to protect investors and maintain the integrity of the securities markets. The SEC requires public companies to disclose meaningful financial and other information to the public, which provides a common pool of knowledge for all investors to use to judge for themselves if a company’s securities are a good investment.