Presentation on IFRS Education at the 2009 AAA CTLA Conference in New York togeter with Professor Mark Holtzblatt (Roosevelt University) and Professor John Haverty (Saint Joseph\'s University)

1. 2nd Annual Conference on
Teaching and Learning in Accounting (CTLA)
August 1-2, 2009
New York City, NY
Panel on IFRS
Norbert Tschakert
Charles W. Lamden School of Accountancy
San Diego State University
ntschake@mail.sdsu.edu
John Haverty
Haub School of Business
Saint Joseph’s University
john.haverty@sju.edu
Mark Holtzblatt
Walter E. Heller College of Business Administration
Roosevelt University
MarkH@roosevelt.edu

2. Introduction To IFRS

3. The Vision Behind IFRS
Robert Herz, Chairman FASB
“If you were to look back from the year 2020
to the year 2001 you would say ‘What chaos!’ and
‘What inefficient capital markets!’ People will look
back and say, ‘How did those people get along
then?’ It will be like we now say, ‘How did people get
along without cell phones?’ When you are in the
middle of it, it is always difficult. It is important just to
keep on towards that end goal.”
KPMG: International Financial Reporting Standards:
Views on a financial reporting revolution, 2006, p. 23, www.kpmg.com
Norbert Tschakert 3

4. Norbert Tschakert 4

5. IFRS Are Already A Reality In The U.S.
• New Standard ‘IFRS for SMEs’ enables private entities in
the U.S. to use IFRS (2009)
• IFRS are used by SEC foreign registrants without
reconciliation to US GAAP (2007)
• IFRS are used by foreign subsidiaries of U.S.
- based multi-nationals
• IFRS are used by U.S. subsidiaries of non-U.S. multi-
nationals for the purpose of consolidation
Norbert Tschakert 5

6. IFRS - Potential Benefits
• Enhances worldwide comparability for investors
• Results in a more efficient capital allocation
• Supports raising capital overseas
• Easier consolidation (one set of books)
• Easier cross-border acquisitions
• Understand the financial statements of overseas suppliers,
customers, subsidiaries
Norbert Tschakert
6

7. There Is A Market Demand To Teach IFRS
Norbert Tschakert 7

8. IFRS Education Is A Prerequisite For Adoption
• One of the seven Milestones in the SEC Roadmap to IFRS
specifically addresses ‘IFRS Education’ as a prerequisite to
adopting IFRS in the U.S. The SEC will consider the state of
preparedness of U.S. issuers, auditors, users and educators.
• IFRS cannot be ignored as soon as it is part of the CPA Exam
(AICPA already working on including IFRS into CPA Exam. IFRS
expected to be part of CPA Exam in 2011)
• Learn from EU experience (Shortage in IFRS Workforce after
adoption of IFRS)
• Enable your graduates to have a worldwide career in Accounting and
to be competitive in a worldwide economy
Norbert Tschakert 8

9. IFRS Increasingly Relevant For
AACSB Accreditation
Standard 15
“Contents of the learning experiences provided by programs
should be both current and relevant to needs of business
and management positions. This implies, for example, that
present day curricula will prepare graduates to operate in
a business environment that is global in scope.
Graduates should be prepared to interact with persons from
other cultures and to manage in circumstances where
business practices and social conventions are different than
the graduate’s native country.”
Norbert Tschakert 9

10. IFRS Increasingly Relevant For
AACSB Accreditation (Cont’d)
Standard 37
“The curriculum management process will result in degree
programs that include learning experiences in …
International accounting issues and practices
including roles and responsibilities played by
accountants within a global context.”
Norbert Tschakert 10

11. IFRS Event Information
Wednesday, August 5th 2009 at 2 p.m.
Teaching Accounting in Time of Harmonization of
Financial Standards
Dr. Gail Naughton, Dean of the College of Business
Administration at San Diego State University, Industry
Committee of AACSB, a member of the Board of Directors
of AACSB International.
Presentation: AACSB's approach to globalization.
Norbert Tschakert 11

12. IFRS at San Diego State University
Leadership for the Global Marketplace

13. Historical Development
The course “International Accounting” has long been part of
the curriculum at SDSU. Traditionally it intended to create
an awareness for cultural differences and to illustrate
different accounting treatments around the world.
As the harmonization among standards and the
convergence project between US GAAP and IFRS
proceeded over the years, this course was over time
transformed to focus more on IFRS and its original scope
was limited to the introduction of this course.
Norbert Tschakert 13

14. Infusion Approach Or
Standalone IFRS Course?
First question to decide at the outset of developing IFRS Curriculum
SDSU maintains an integrative accounting curriculum and
chose to do both:
Every course includes comparisons to IFRS and in addition the “Graduate
Seminar in International Accounting” provides an in-depth knowledge of
IFRS. Starting next year, SDSU will offer two IFRS classes, one on a rather
technical level and one on an introductory level.
Advantages:
All members of the Faculty have to be familiar with introducing IFRS
All students will have a minimum understanding of IFRS
Students have the option to gain a good understanding of IFRS
Norbert Tschakert 14

15. Strong Focus On
Framework And Principles
At the moment the goal is to
- get students ready for the job market
- enable students to research IFRS topics on their own
- to ensure a basic understanding of IFRS.
An initial limited scope facilitates the implementation in the
classroom.
The scope of the class can be expanded as IFRS become
more relevant in the U.S.
Norbert Tschakert 15

16. Bringing The Structure Of IFRS
Into The Classroom
An IFRS is typically made up of some or all of the following sections:
- Introduction (IN)
Use the Structure of the
- Objectives
Standard for the Structure
- Scope of your Lecture. Work with
- Definition of terms used the Original Text.
- Body of the standard (core text)
- Effective date and transitional provisions
- Application Guidance (AG)
- Approval by IASB
- Basis for Conclusion (BC)
- Dissenting Opinions by IASB members
- Implementation Guidance (IG)
- Illustrative Examples (IE)
Norbert Tschakert 16

17. Challenge And Involve Students With
IFRS Group Presentations
Examples:
SEC Roadmap
Discussion Papers (www.iasb.org)
Exposure Drafts (www.iasb.org)
Steps in Adopting IFRS
Performing a GAP Analysis
Accounting Scandals under US-GAAP and IFRS
IFRS in Developing Countries
IFRS for SMEs
Norbert Tschakert 17

18. Guest Speakers
Liven Up The Classroom
IFRS Guest Speakers from countries that have applied IFRS for years
are a great resource for your class.
At SDSU:
- Manager from the IASB (SDSU Graduate) from London reported on
IASB and political influence via Internet
- Presenter from GAAPSeminars calculated IFRS Examples
If you do not have access to a knowledgeable IFRS guest speaker,
consider using ‘IFRS Cyber-Guest Lecturers’
(-> Mark Holtzblatt, Roosevelt University)
Norbert Tschakert 18

19. CTLA IFRS Panel Presentation
Dr. John L. Haverty
St. Joseph’s University
Philadelphia, PA 19131
jhaverty@sju.edu
CTLA IFRS Panel John L. Haverty St.
Joseph's University

20. The PWC Email
Dear Professor:
Each year, PricewaterhouseCoopers LLP
employs several thousand new campus hires and
interns. Candidates for these positions are
evaluated, in part, on behavioral interviews that
focus on specific competencies that are essential
to success in the Firm. One of these is acquiring
and applying technical and professional skills and
knowledge.
CTLA IFRS Panel John L. Haverty St.
Joseph's University

21. The PWC Email
PwC believes it is important for our new hires
to have sufficient knowledge and skills about IFRS
to transition easily into our practice. Therefore,
we will include IFRS in the basis for making
decisions about an applicant's level of technical
and professional skills and knowledge. Starting in
Fall 2009, we will expect that applicants will have
used our learning opportunities or other means
so that:
CTLA IFRS Panel John L. Haverty St.
Joseph's University

22. The PWC Email
Sophomores interviewing for summer
programs and internships and who have had
at least one term of accounting should have a
pre-awareness of IFRS. This is the ability to
Define what IFRS stands for
Articulate the general uses of US GAAP and IFRS
Recognize that IFRS will be important in the future
CTLA IFRS Panel John L. Haverty St.
Joseph's University

23. The PWC Email
Juniors and above interviewing for internships
or full time positions should have a full
awareness of IFRS. This is the ability to
Do all pre-awareness tasks
Articulate the sources of US GAAP and IFRS
Describe an example of IFRS financial statements
Identify an example of a difference between US
GAAP and IFRS
Explain the current status and likely timetable for
adoption of IFRS
CTLA IFRS Panel John L. Haverty St.
Joseph's University

24. IFRS at St. Joseph’s University
• No standalone IFRS course at this time
• Across-the-curriculum approach
• Course by course
– Financial Accounting
– Managerial Accounting
– Intermediate Accounting Sequence
– Advanced Accounting Course
– International Accounting Course (elective for
accounting majors, required for international business
majors)
CTLA IFRS Panel John L. Haverty St.
Joseph's University

25. Financial Accounting Course
• Faculty stretched thin
• Textbook driven—we depend on IFRS content in
the textbook
• General globalization approach
• We are inserting an Assurance of Learning
objective tying into the PWC email
• Faculty have not reached consensus yet
– Not enough IFRS here—for non-accounting majors
this is their ONLY exposure to IFRS
– Too difficult to make substantial changes outside of
what is in the textbooks
CTLA IFRS Panel John L. Haverty St.
Joseph's University

26. Managerial Accounting Course
• Faculty stretched thin
• Textbook driven—we depend on IFRS content
in the textbook
• General globalization approach
– Transfer pricing is a great international topic
– Plant valuation affects the cost of a product (IFRS
options on plant valuation)
CTLA IFRS Panel John L. Haverty St.
Joseph's University

27. Intermediate Accounting Sequence
• Most crucial course
• Reasonable material starting to appear in the
textbooks
• Using the Virginia Tech Materials (available in
AAA Commons)
CTLA IFRS Panel John L. Haverty St.
Joseph's University

28. Advanced Accounting Course
• The title of the proposal, "The StarWorld Ledger
System: Curricular Integration of International Financial
Reporting Standards with a Computerized Accounting
Simulation", will take the principles based approach
required by IFRS, and simulate a series of transactions
into a practice set for use in the classroom. This model
will outline the differences between the currently
GAAP standards and compare it to the emerging IFRS
requirements. The practice set will be delivered in an
integrated approach between SAP and Excel, and will
be developed in a collaborative effort among the
department faculty and students.
CTLA IFRS Panel John L. Haverty St.
Joseph's University

29. International Accounting Course
• Elective for accounting majors
• Required for international business majors
– No intermediate as prerequisite
• Two-audience problem
• Specific IFRS differences
– Property, plant and equipment
– Research and development
• Use 20-F reconciliations and have the students “discover”
differences
– Unfortunately these are no longer required, but past ones are
available
• Use a case study where there is multiple reporting
– China Eastern Airlines (Haverty, IAE, 22,4, 2007)
CTLA IFRS Panel John L. Haverty St.
Joseph's University

30. “Global Accounting: IASB and IFRS”
at Roosevelt University in Chicago
Mark A. Holtzblatt, Ph.D., CPA
Associate Professor of Accounting
The Heller College of Business
Roosevelt University
Chicago, Illinois
2nd Annual Conference on Teaching and Learning in Accounting (CTLA),
Aug 1 and 2 , 2009, New York City, NY

31. Course Design Goal:
To Create an “Enlivened” IFRS Class
___________________________________________________________________________________________
 Online Interactivity
 Use of IFRS Web resources
 Use of IFRS Webcasts and Videos
as a supplementary pedagogical
resource. 2

32. Considered the IFRS Certificate Programs
of ACCA and ICAEW
3

33. ACCA and ICAEW evaluation:
___________________________
Cost prohibitive: $270 to $600 per student
Not as accounting intensive as desired…
designed for Finance professionals also
Chose the Deloitte IFRS e-Learning Modules
4

34. 5

35. 6

36. 7

37. 8

38. IFRS e-Learning Modules:
_______________________________________________________________________________________
Cost is free for a $4 million interactive online
training program
 Continuously updated by Deloitte
 Students are challenged
 Realistic cases - clients, co-workers, emails,
faxes, phone calls, financials, deadlines etc.
9

39. e- IFRS by the IASB
__________________________________________________________
• Students become familiar with researching
the actual IFRS standards
• Low cost: $20 for what normally costs $400
10

40. 11

41. 12

42. 13

43. IFRS Books in Various Nations
CANADA AUSTRALIA UK
(2009) (2007) (2008)

44. Selected Blackboard.com Weekly
Lessons from the course
Global Accounting: IASB and IFRS
15

45. 16

46. 17

47. 18

48. 19

49. IFRS Cyber-Guest Lecturers

50. Sir David Tweedie, Chairman of the IASB
Toronto, Canada in 2008
21

51. An Emerging IFRS
Pedagogical Resource
______________________________________________
 IFRS Webcasts and Videos
 A Sharp Acceleration Since 2008
 The Entire Collection is Impressive
 Valuable Supplements for teaching
23

52. Sources of IFRS
Webcasts & Videos
________________________________________________________________________________________________________________________________________
 Global Accounting Firms
 Professional Institutes (AICPA,CICA,ICAI)
 Educational Institutions (Pace University)
 Youtube.com
 Blinkx.com 24

54. 26

56. 28

57. 29

59. PWC.tv

60. 33
IFRS.com video clips by the AICPA

61. 34

62. OTHER SOURCES OF IFRS VIDEOS
 YOUTUBE.COM
 BLINKX.COM

64. Introductory Accounting, Finance
and International Business Courses
____________________________________________________________________________________
 Short video clips are ideal
 Raises student awareness of IFRS
 PWC.tv – Partners, Managers, Professors
 IFRS.com – Practitioners, Regulators

65. Advanced Undergrad and Grad Classes
__________________________________________________________________________________________
 Short video clips for introduction
 IFRS Principle webcasts as supplements
(i.e., Inventory, PP & E, Intangibles)
 Conferences (Academic and Professional)
- Pace University IFRS Conference
- PWC Executive Conferences
- KPMG- Sir David Tweedie Interview
- Canadian Conferences

66. New “Stand-Alone” IFRS Courses
_______________________________________________________________________________________
Summer/ 2009 IFRS Courses at Roosevelt:
 Entire spectrum of IFRS webcasts & videos
 Deloitte e-Learning Modules
 IASB e-IFRS
 Wiley Book: IFRS Primer

67. Benefits for Professors
 Quality IFRS Speakers are Accessible
 Just Need Requisite Equipment and Internet
Benefits for Students
 Respond to innovative technology applications
 Heightened interest in experts speaking
 Able to watch webcasts & videos repeatedly
40

68. CONCLUDING REMARKS:
Tony Conti, PricewaterhouseCoopers
41