international financial reporting standards jennifer tam lynn wang mike zaretsky erin larson ashish...

INTERNATIONAL FINANCIAL REPORTING STANDARDS

Jennifer TamLynn WangMike ZaretskyErin LarsonAshish Jain

Audience

“Institutional investors are pension funds, mutual funds, money managers, insurance companies, investment banks, commercial trusts, endowment funds, hedge funds, and some hedge fund investors. They account for half of the volume of trades on the New York Stock Exchange. They move large blocks of shares and have tremendous influence on the stock market's movements. Institutional investors are considered to be knowledgeable and, therefore, less likely to make uneducated investment.”

Source: Investopedia.com

Message

IFRS is for YOU Benefits of IFRS

include: Cost savings Comparability Confidence Transparency

Media

Print media Institutional Investor magazine and others Wall Street Journal

Internet Information “hub” at www.aicpa.org/ifrs-for-

you Web site address identified in print ads

Automatically receive mobile/electronic news and updates

Deficiencies in U.S. GAAP

Rules-based accounting provides loopholes and makes companies less accountable

Deficiencies in U.S. GAAP

Investor confidence is at all-time low

No one else follows it – higher cost, less comparability

Lower Income by allowing LIFO

IFRS Overview

A set of country-neutral accounting standards that continue to evolve

Over 100 countries require or permit IFRS

IFRS Rocks

Cost savings and increased earnings

Single set of global accounting standards

International comparability Improve investor confidence by suggesting proper accounting treatments

Increased Earnings

LIFO not allowed – this will force companies to report accurate and higher earnings

Increased Earnings

Revaluation of PPE (Property, Plant, and Equipment) allowed

Most Leases would be classified as Operating Leases

Increased Earnings

Significantly shorter than full IFRS for small and medium sized entities (SMEs) (95% of all companies will be covered)

Cost Savings

Lower Cost of Capital – global comparability among companies will provide them with access to worldwide capital

A single set of financial standards - less time to prepare and fewer resources needed worldwide

Questions?

Sources

www.ifrs.org www.aicpa.org AICPA webcast “What IFRS Means to

You” http://www.pwc.com/us/en/issues/ifrs-rep

orting/index.jhtml http://www.ey.com/Publication/vwLUAsse

ts/IFRS_v_GAAP_basics_Jan09/$file/IFRS_v_GAAP_basics_Jan09.pdf