Attestation Update – A&A for CPAs

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Posts Tagged ‘IFRS

IFRS adoption is not quite as widespread as you think

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Image courtesy of Adobe Stock.

A presenter at the CalCPA’s Accounting and Auditing Conference on April 25, 2017 said IFRS has been adopted by over 120 countries, essentially every country on the planet with the holdout exceptions of:

  • U.S.
  • China
  • Japan
  • India

The inference is the overwhelming majority of the stocks in the world are reported on a consistent basis.

The US is the main stubborn hold out. He suggests China is holding back to see what the US does. Ripple effect is that if the US continues to hold out, China will too. If we adopt, China will too.

There is still the uncomfortable reality that each country chooses which aspects of IFRS to adopt or reject.

Apart from that precisely-consistent-across-the-planet idea, the comment that only a few countries have not adopted and eeeeevryone else is doing it makes it sound like most stocks are reported on IFRS.

I checked.

That isn’t the case.

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Written by Jim Ulvog

April 28, 2017, 7:29 am at 7:29 am

Posted in Accounting

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Like a persistent vampire in a horribly bad horror movie, IFRS just won’t stay dead in the U.S.

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Image courtesy of Adobe Stock.

I thought IFRS in the US was dead. In case you didn’t know, I have a fairly strong opinion on the issue.

A presenter at the CalCPA’s Accounting and Auditing Conference on April 25, 2017 had the following comment on IFRS at the end of the presentation:

Death, taxes, cockroaches, and IFRS aren’t going away.

My immediate thought:

Unfortunately, that now seems to be true.

IFRS is baaaack

He perceives the pendulum of discussion on IFRS is swinging back to the topic being on the table.

His comments consistently contained the inference that IFRS is one body of knowledge, consistent in its application in every country across the planet that has adopted the rules.

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Written by Jim Ulvog

April 26, 2017, 7:15 am at 7:15 am

Posted in Accounting, Audits

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IFRS adoption likely to stay dead

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The SEC Chief Accountant had some comments in a speech today that reduces my worry that IFRS converadoption ™ may resurrect from the dead.

Check out Remarks before the 2014 AICPA National Conference on Current SEC and PCAOB Developments – The SEC Chief Accountant, James Schnurr spoke to the AICPA conference.

I don’t know how to read between the lines of a prepared speech from a senior official. My simplistic reading of the comments suggests that he has been asked to look at the IFRS issue again to see if there is any way to move forward or else close the door completely.

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Written by Jim Ulvog

December 8, 2014, 11:21 am at 11:21 am

Posted in Accounting

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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 ™ .

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Written by Jim Ulvog

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

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IFRS adoption: Yet another fatal flaw and a heaping dose of ridicule

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Apparently it is not yet universally believed that adopting IFRS for the U.S. is a horrible, fatally flawed concept that would harm the U.S. capital markets. I’ll mention yet another catastrophic flaw in the concept after a few jokes at the expense of IFRS.

First, some indication there is still a heartbeat in the otherwise decaying corpse.

I hope there’s still not hope for convergadoption ™

Mentioned before that the New SEC Chief Accountant {is} Weighing Switch to Global Accounting Rules – The new chief accountant is reviewing past work at the SEC on IFRS.

On November 6, the Wall Street Journal reported he hopes in a few months to have “movement” on the issue. Didn’t give a hint what direction he thinks the agency should go.

Professors Paul Miller and Paul Bahnson discuss IFRS at length in their article, IFRS in the U.S.: The opera star has already sung (free registration required).

In the article, they explain that SEC chair Mary Jo White said she thought IFRS adoption might be a good idea in a meeting with the FAF.

A heaping helping of ridicule

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Written by Jim Ulvog

November 24, 2014, 7:21 am at 7:21 am

Posted in Accounting

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More good stuff for auditors – 11/10

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A few articles of interest to auditors. Uh oh – perhaps IFRS isn’t completely dead. A couple of ideas on social media.

11/6 – Wall Street Journal – New SEC Chief Accountant Weighing Switch to Global Accounting RulesRead the rest of this entry »

Written by Jim Ulvog

November 10, 2014, 9:20 am at 9:20 am

Posted in Accounting, Social media

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We can finally bury IFRS convergadoption ™?

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I believe the answer is yes.

At least that is the conclusion I draw from an article by Michelle Quah at The Business Times: Full convergence on accounting standards no longer achievable: IASB

The paragraphs visible in front of the paywall report that Hans Hoogervorst, Chairman of the IASB, said full convergence with the U.S.

…is no longer an achievable project.

IASB moved forward with their IFRS 9 on financial instruments without any agreement with FASB. The boards are going their own ways.

In the meantime, each country around the world can continue to pick and choose which parts of IFRS it wishes to follow.

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Written by Jim Ulvog

August 1, 2014, 7:25 am at 7:25 am

Posted in Accounting

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