Académique Documents
Professionnel Documents
Culture Documents
– The EU has required IFRS since Jan 1, 2005 (under a 5-step process).
– The SEC indicated that a global reporting infrastructure should include active
regulatory oversight.
– IASC is composed of 6 trustees from N America, 6 from Europe, 6 from
Asia/Oceanic region, and 4 from any area to establish overall geographical
balance.
– On November 15, 2007, the SEC voted to allow foreign private issuers who
prepare their financial statements in accordance with IFRS as issued by the IASB
to file their financial statements without reconciling to U.S. GAAP. The new rule is
applicable to financial statements for financial years ending after November 15,
2007, and interim periods within those years contained in filings made with the
SEC after the effective date of the rule, which is March 4, 2008.
– One aspect of the IASB's mission is “developing, in the public interest, a single
set of high quality, understandable and enforceable global accounting standards
(known as IFRS) that require transparent and comparable information in general
purpose financial statements.”
– The principal classes of users of financial statements are present and potential
investors, employees, lenders, suppliers and other trade creditors, customers,
governments and their agencies, and the general public. Common to all of these
user groups is their interest in the ability of an entity to generate cash and cash
equivalents and in the timing and certainty of their generation.
– The objective of financial statements is to provide information about the
financial position, performance, and changes in financial position of an entity
that is useful to a wide range of users in making economic decisions. The
Balance Sheet presents info about economic resources under control, financial
structure, liquidity, solvency, and adaptability to environmental changes. The
Income Statement provides info about performance, which is the ability of an
entity to earn a profit on the resources that have been invested in it. The
Statement of Cash Flows shows info relating to investing, financing, and
operating activities.
– Characteristics that make financial statement information useful are
understandability, relevance, reliability, and comparability (this quality is not
considered for GAAP).
– Capital maintenance adjustments are the increases or decreases in equity due to
the revaluation or restatement of assets and liabilities (capital maintenance
provides a point of reference for measuring profit, which is the residual after
deducting expenses and capital maintenance adjustments from income).
– The IASB framework acknowledges measurement bases including historical cost,
current cost, realizable (settlement) value, and present value (discounted).
– First time adoption of IFRS generally requires retroactive application, with the
first date of application being Jan 1, 2004.
– The reporting date is the end of the latest period covered by financial
statements or by an interim financial report. The transition date is the beginning
of the earliest period for which an entity presents full comparative information
under IFRS in its first IFRS financial statements (e.g., January 1, 2004, for 2005
adopters).
– IFRS 1 requires disclosures that explain how the transition from previous GAAP to
IFRS affected the entity's reported financial position, financial performance, and
cash flows. This includes the following: Reconciliations of equity reported under
previous GAAP to equity under IFRS both at the date of the opening IFRS balance
sheet and the end of the last annual period reported under the previous GAAP,
Reconciliations of profit/loss for the last annual period reported under the
previous GAAP to profit or loss under IFRS for the same period, Explanation of
material adjustments (including error corrections and impairment losses) that
were made, in adopting IFRS for the first time, to the balance sheet, income
statement, and cash flow statement, and Appropriate explanations if the entity
has availed itself of any of the specific recognition and measurement
exemptions permitted under IFRS 1 (e.g., if it used fair values as deemed cost).
– A calendar-year-end foreign private issuer does not have to include a
reconciliation to U.S. GAAP in its 2007 financial statements as long as the issuer
prepares its financial statements in accordance with IFRS as issued by the IASB.
– National standard-setters will be working together with the IASB in developing
common standards and implementing global standards nationally.
Acrony
Organization Purpose
m
Basle Basle Committee on Basle is a committee of senior
Banking Supervision representatives of banking
supervisory authorities and central
banks from Belgium, Canada,
France, Germany, Italy, Japan,
Luxembourg, the Netherlands,
Sweden, Switzerland, the United
Kingdom, and the United States.
EC European The EC (1) is charged with making
Commission proposals for all new legislation,
(2) acts as the guardian of the EU
treaties to ensure that EU
legislation is applied correctly by
the member states, and (3) is the
executive body of the EU
responsible for implementing and
managing policy.
EFRAG European Financial The EFRAG represents the main
Reporting Advisory private-sector groups closely
Group involved in financial reporting,
namely the accting professions,
stock exchanges, financial
analysts, and companies
preparing accounts.
EU European Union The EU is a political entity whose
goal is to harmonize the legal and
economic systems of its member
states (Austria, Belgium, Bulgaria,
Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy,
Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland,
Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden, and the
United Kingdom).
FOF Forum of Firms The FOF is a body representing
firms and networks of firms that
perform or are interested in
performing transnational audits.
The objective of the FOF is to
promote consistently high
standards of financial reporting
and auditing worldwide.
IAFEI International The IAFEI is an association aiming
Association of to provide a basis for international
Financial Executives cooperation among financial
Institutes executives toward making
financial systems and regulations
more uniform, compatible, and
harmonious worldwide.
IAIS International The IAIS is an association aiming
Association of to develop practical standards for
Insurance supervision of the insurance
Supervisors industry.
IASB International The IASB is an independent,
Accounting Standards private-sector standards-setting
Board body founded in 1973 by
professional accounting
organizations in nine countries.
The IASB issues IFRS.
ICIA International Council The ICIA is an organization of
of Investment investment associations focused
Associations on uniting interests.
IFAC International The IFAC is an assembly
Federation of representing more than two
Accountants million accountants. It serves as
the accounting profession's global
professional organization.
IFAD International Forum The IFAD has provided a
on Accountancy mechanism through which those
Development with an interest in improving
reporting and auditing practices
can communicate and can develop
the partnerships necessary to
promote change in an effective
and efficient manner. The
objectives of the IFAD include
developing a common strategy
and framework of reference for
accountancy development, and
promoting cooperation between
governments, the accountancy
and other professions, the
international financial institutions,
regulators, standard-setters,
capital providers, and securities
issuers.