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IFRS vs GAAP IFRS project info

IFRS vs GAAP IFRS project info - pwc.com/usifrs IFRS...

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IFRS and US GAAP similarities and differences September 2009 IFRS readiness series
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Table of contents 1 September 2009 The heart of the matter 2 US financial reporting will undergo an unprecedented level of change over the next several years. An in-depth discussion 4 Examining the implications. IFRS affects US businesses in multiple ways 5 Convergence leading to a conversion 7 What this means for your business 10 A call to action. What companies can and should do now 11 A further study 13 IFRS and US GAAP similarities and differences
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The heart of the matter US financial reporting will undergo an unprecedented level of change over the next several years.
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International Financial Reporting Standards (IFRS) have been affecting US companies for some time, whether through their business dealings with non-US customers and vendors that use IFRS or through their non-US subsidiaries’ adoption of IFRS. Soon, US compa- nies will feel an increasing effect of IFRS here at home as key aspects of United States generally accepted accounting principles (US GAAP) and IFRS continue to converge. The Securities and Exchange Commission’s (SEC) proposed roadmap for adopting IFRS slates initial adoption for 2014. That date is apt to slide back somewhat as the SEC continues to focus on economic and regulatory structural concerns as well as the politics of change. We expect the SEC will begin refocusing on IFRS in the fourth quarter of 2009 and/or early 2010. Despite this delay, the US government’s acknowledgment of the need for a single set of high-quality global standards—in addition to the continuing globalization of the capital markets—and the SEC’s ongoing, thoughtful approach to assessing IFRS adoption, point to the inevitability of IFRS as the global standard. Converge Adopt In the meantime, it has been proposed that nearly a dozen new standards will advance the convergence of US GAAP and IFRS by the end of 2011. Fundamental areas to be affected by convergence include debt and equity, revenue, leasing, consolidation, and financial instruments. As converged standards are introduced, many US companies and their investors will see, among other things, major changes in financial statements. The impact of the accounting changes caused by convergence will go well beyond finan- cial reporting. Tax policy, mergers and acquisitions, financial planning, systems require- ments, and compensation structures are just some of the areas that will be affected. This publication is designed to help readers develop a broad understanding of the major differences between IFRS and US GAAP today as well as an appreciation for the level of change on the horizon. While this publication does not cover every difference between IFRS and US GAAP, it focuses on those PwC generally considers most significant and/or most common.
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