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