US CFOs mixed on international accounting choice

The US Securities and Exchange Commission (SEC) proposed last week that foreign public companies listed in the United States may choose International Financial Reporting Standards (IFRS) or US Generally Accepted Accounting Principles (GAAP) when filing reports. In a recent survey by Financial Executives International and Baruch College, just over half of the 148 CFOs polled said they would support the SEC's plan. But almost 45 percent said they were opposed to it. In comments, some of the CFOs said they felt the ability to choose between accounting standards was inconsistent or that regulators should allow only one standard, whether it is IFRS or US GAAP.

World Federation of Exchanges supports IFRS

Responding to a consultation paper of the IOSCO Technical Committee, the World Federation of Exchanges (WFE) explained the importance of sound financial reporting to public capital markets. It reaffirmed the WFE's strong support of IFRS. The WFE is the global organisation of 54 regulated exchanges from all regions of the world that account for over 97% of world stock market capitalization.

Canada's IFRS Advisory Committee

Canada's Accounting Standards Board (AcSB) is seeking expressions of interest from individuals who have experience in the preparation of financial reports under International Financial Reporting Standards (IFRS) to participate as a volunteer on the IFRS Advisory Committee. This Committee assists the AcSB and staff in implementing its strategy for adopting IFRS for publicly accountable enterprises.

Canada - Financial Reporting by Private Enterprises

"Financial Reporting by Private Enterprises" is a recording of an interview with Paul Cherry, Chair of Canada's Accounting Standards Board on the recently released Invitation to Comment and Discussion Paper. Additional information is available on the website. Responses to these documents are requested by October 31, 2007.

The simple complexity of XBRL

At a recent Securities and Exchange Commission (SEC) and Financial Reporting Institute Conference in California, Robert Herz, chairman of the Financial Accounting Standards Board, said that one complication involved with implementing eXtensible Business Reporting Language (XBRL) is the difference between US accounting standards and those abroad. That means that both US GAAP and IFRS have different data "tags," which adds to the cost and confusion of using XBRL (view the full article).

SEC to discuss eliminating reconciliation

The US Securities and Exchange Commission (SEC) has scheduled an Open Meeting on Wednesday, June 20, 2007 in Washington, D.C. to consider whether to propose amendments to accept financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States when contained in the filings of foreign private issuers with the Commission (view the announcement).

IFRS Advisory Committee (IAC) — Report on Public Meeting

At its May 2007 meeting, the IAC discussed the AcSB’s plan for reviewing Canada’s progress in preparing to implement International Financial Reporting Standards (IFRS). It also discussed the effects of adopting IFRS on accounting in the oil and gas sector and for joint ventures (view the Report on Public Meeting).

EFRAG updates endorsement status report

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations and amendments. The report is called: The EU endorsement process: Position as at 4 June 2007. Certain IASB pronouncements have not yet been endorsed for use in Europe including IFRS 8 Operating Segments, IAS 23 Borrowing Costs (revised March 2007) and IFRIC 12 Service Concession Arrangements. More information is available on the EFRAG website.

CESR addresses equivalence of GAAP of third countries to IFRS

In accordance with the mandate of the European Commission, the Committee of European Securities Regulators (CESR) has published its advice on a mechanism for determining equivalence of the generally accepted accounting principles of third countries to IFRS. CESR also suggests the European Commission consider extending the existing transitional measures for those countries currently converging to IFRS, if certain conditions are met. Should the Commission adopt such transitional measures, CESR recommends they not be extended beyond 2012. The press release and final advice are available online.

Adopting International Financial Reporting Standards in Canada

A presentation that provides a broad overview of matters to be aware of leading up to Canada’s convergence with International Financial Reporting Standards (IFRS) for publicly accountable enterprises has been posted (view slides or audio presentation)

IFAC global survey on financial reporting

The International Federation of Accountants (IFAC) has invited all participants in the financial reporting supply chain (including investors and other users of financial reports, standard setters, preparers, auditors, academics and regulators) to complete a global survey designed to obtain information that could strengthen the financial reporting process. The survey is open until July 6, 2007. It is part of an IFAC project to develop recommendations for improving the quality of corporate governance, financial reporting (including IFRS) and financial auditing. It will also include in-depth one-on-one interviews. Participants are asked to complete the survey online (www.ifac.org/financialreportingsurvey/).

United States and Japan discuss global convergence to IFRS

The Financial Accounting Standards Board (FASB) recently met with the Accounting Standards Board of Japan (ASBJ) in Tokyo to discuss their shared pursuit of global convergence of accounting standards. Representatives of both Boards agreed that their ongoing discussions are useful in promoting mutual understanding that will contribute to subsequent deliberations and to their respective convergence projects with the IASB. They agreed to continue exchanging views on longer-term issues and current concerns (view FASB press release).

Implications of moving to IFRS for existing Canadian/US GAAP differences

The document, Implications of moving to IFRSs for existing Canadian/US GAAP differences, has been prepared by the staff of the Accounting Standards Board (AcSB) to provide a high level summary of the extent to which convergence of Canadian standards with International Financial Reporting Standards (IFRS) could be expected to eliminate existing differences between Canadian and US GAAP, or create new differences. Its purpose is to provide readers of the AcSB’s “Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP” with information about the extent to which the move to IFRS will reduce or increase conflicts with US GAAP compared with those that exist currently between Canadian standards and US GAAP.