Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

More good stuff for auditors – 12/5

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A few links and comments of interest to auditors. The corpse of IFRS is looking more like a vampire. There are little muscle twitches, suggesting it isn’t fully dead.

12/3 – Edith Orenstein at FEI Daily – SEC Chief Accountant Has Fourth Alternative on IFRSThe Chief Accountant is considering a fourth option, following the options of 1) surrendering all standard setting authority to IFRS, 2) giving option to everyone to file with IFRS, and 3) ‘condorsement’, aka convergadoption ™ .

He does note that interest in IFRS is fading.

He also acknowledges that the priority in the discussion of IFRS is actually the interests of US investors, which is an encouraging sign.

Ms. Orenstein speculates the newest option would be to permit supplemental information presenting key information on an IFRS basis. Perhaps there would be phase in time after which it would be required. Open idea would be whether the supplemental info would be audited.

Update: Here is speculation from Adrienne Gonzalez at Going ConcernSEC Chief Accountant Suggests Mysterious Plan D for IFRS

Shall we speculate wildly as to what fourth alternative Schnurr has up his sleeve? Here’s a suggestion: let’s do financial statements in GAAP but footnotes in IFRS, wouldn’t that be a blast?

So, mark your calendars for the third of never. I don’t know about you but I can’t wait to hear what IFRS surprise the SEC is cooking up this time.

11/24 – Figuring Financial Forensics – Watchoo Talkin’ ‘Bout – Great reminder from Rumbi Bwerinofa that we accountants need to speak simply enough that our clients and stakeholders can understand what we say.

11/29 – Medium – PwC Cashes In On AIG; Taxpayers Lose, Again – Francine McKenna provides a survey of the tax plans sold by PwC to a lot of clients using Luxembourg as location to route the tax savings plans through.

From an accountant’s perspective, seems to me the biggest issue is whether this violates PCAOB independence rules.

11/6 – Compliance Week – FASB Studies Possible Deferral for Revenue Recognition – In early 2015, FASB will consider requests to postpone the effective date.

The massive set of rules will go into effect for years beginning after 12/15/16. For private companies, that means 12/31/17 financial statements. For public companies, that means the quarter and fiscal year that starts 1/1/17. Since three-year comparative info is needed, that means comparative data will be needed for the quarter starting 1/1/15.

Written by Jim Ulvog

December 5, 2014, 8:13 am at 8:13 am

Posted in Accounting, Audits

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  1. […] had some comments in a speech today that reduces my worry that IFRS converadoption ™ may resurrect from the […]


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