1. 2/1/2012
Dec. 5, 2011:
SEC Chief Accountant
Derrick B Stark, CPA indicates the SEC staff
February 17, 2012 is months from
completion of a final
report for the
commission to make a
decision on IFRS.
2
1. FASB|IASB Complete Work on
Memorandum of Understanding
The number of U.S. public Projects (“MOU”)
companies waiting on the SEC a. Revenue Recognition
to support adoption before b. Leasing
c. Financial Investments
implementing IFRS statement
d. Insurance
preparation.
4
2. Incorporate IFRS into U.S. GAAP
a. IASB Handles New Projects
b. FASB Consults in Development and Evaluates FASB, IASB, Chiefs
“Suitability” for U.S. GAAP (Name Retained)
Agree New
3. FASB Evaluates Remaining Differences Between
U.S. GAAP and IFRS. Convergence
Model is
Needed.
- Journal of Accounting, 12/6/2011
5 6
1
3. 2/1/2012
• Stark, Derrick. “Why IFRS Matters Now” SCACPA
CPA Report. 2nd Quarter, 2011.
• Stark, Derrick. “Getting from Point GAAP to
Point IFRS” SCACPA CPA Report. 3rd Quarter,
2011.
2011 Derrick B Stark, CPA
Derrick B Stark CPA
• Stark, Derrick. “Will the United States Ever MiraVista, LLC
Accept IFRS?” SCACPA CPA Report. 4th 803.462.9959 x 200
Quarter, 2011. derrick@miravistallc.com
www.miravistallc.com
Reprinted with permission from The CPA Report, published by the South Carolina
Association of CPAs
13
These materials and links to other sources are provided
for informational purposes only and are not intended
to be and should not be construed as legal advice.
MiraVISTA does not guarantee or warrant that the
MiraVISTA does not guarantee or warrant that the
materials are without error or present a complete
explanation of all of the subject material.
Laws and procedures change frequently and are subject
to differing interpretations. Content and information is
subject to change without notice.
3
4.
5.
6.
7. Will the
UNITED STATES
Ever Accept IFRS?
by Derrick B. Stark, CPA
SCACPA member since 1996
O
ver 120 countries currently IFRS and rules-based U.S. GAAP is In an article co-authored by University
permit or require financial narrowing. While Grayson-Caprio is of South Carolina professor Timothy
statement reporting using a fan of principles-based standards, Doupnik, research suggests that,
International Financial Reporting she acknowledges, "They [IFRS] are even in those countries that have
Standards (IFRS). Many more are changing to become more rules-based." implemented IFRS, cultural differences
currently developing or implementing among nations can lead to materially
IFRS adoption. While IFRS ma ers now In addition to more specifics in IFRS, different interpretations of the standards
to U.S. companies that have foreign broadly accepted interpretations (h p://www.journalofaccountancy.
reporting requirements, the United by practitioners will aid preserved com/Issues/2009/Feb/
States is largely seen as a major hold comparability. "Companies establish IFRSBeyondtheStandards). Words like
out in the global acceptance of the internal policies within the [IFRS] "probable" have very different meanings
international standards. According to principle, and the companies have to be to preparers based on national culture
the latest AICPA IFRS Readiness Survey, consistent from year to year," according and values, and as such, recognition and
76 percent of public companies are to Grayson-Caprio. disclosure will vary significantly based
waiting for the SEC to support adoption on locale regardless of the common
before implementing IFRS statement Many of those internal policies naturally standards. Perhaps, then, a single set
preparation and many have not yet find their genesis in the copious of high quality accounting standards
acquired the expertise they will need to amounts of U.S. GAAP literature and does not necessarily provide the global
do so. All of this begs the question, will historical practice. As a result, the comparability we pursue.
the US ever accept IFRS? professional judgment of the internal
policy drafters, financial statement The destiny of IFRS in the United States
At a glance, IFRS, a principles-based preparers, and auditors is expected may be that of soccer. Sure it has a
set of standards, seems to contradict to smack of U.S. GAAP except for loyal following in America among those
the revered objective of comparability the places where there are direct with a reason to participate, but Hank
baked into U.S. GAAP. The flexibility contradictions. Thus, comparability Williams, Jr. may never wail, "Are you
necessary to foster broad acceptance between companies is likely preserved ready for some...futbol?" n
leaves open the door for wider at a practical level in the United States
interpretation and varied results. even under IFRS. Derrick B. Stark, CPA, is managing
Adopting IFRS, moreover, seems like an member of ClaraVista LLC, a
about face to the post-Enron deluge of Assuming that IFRS does gain some reimbursement and consulting
specifics in our rules-based system. traction by the authoritative accounting
firm serving home medical
equipment suppliers throughout
bodies here, one cannot help but
the United States. Derrick’s areas of
Terry Grayson-Caprio, a partner at wonder how much comparability
expertise include data analytics and
KPMG LLP in Greenville, thinks the abroad is likely given contradiction application development. Derrick can be reached at
gap between the principles-based between flexibility and comparability. derrick@claravistallc.com.
(888) 557-4814 | www.scacpa.org South Carolina CPA Report 19
