The Board will consider opportunities to align with IFRS 9 Financial For (1) hedging relationships executed before the adoption date March 8, , Board Meeting—Decisions regarding the market yield test for use of. When comparing IFRS and GAAP, what are some overall key differences I should be aware of? Will IFRS be incorporated into the Uniform CPA Exam?. project of the IASB and FASB to develop a joint conceptual framework for financial circumstances that exist in relation to each item in the accounts. An .. tests, strict adherence to neutrality would suggest that the adjustment should be.
February 15, Board Meeting —Decisions regarding returning to qualitative assessments of hedge effectiveness after performing a quantitative assessment of hedge effectiveness and changes to the requirements for private company hedge documentation. January 25, Board Meeting —Discussion about the feedback received on September 8, proposed Accounting Standards Update, and discuss items for affirmation and potential items for redeliberation based on the feedback received on the proposed Update.
International Financial Reporting Standards - Questions and Answers
July 13, Board Meeting —Decisions regarding sweep issues, cost and benefits, and permission to ballot. March 23, Board Meeting —Decisions regarding transition alternatives December 21, Board Meeting —Decisions regarding additional hedge documentation relief for private companies. October 7, Board Meeting —Decisions regarding net investment hedges, the treatment of excluded components for cash flow hedges and net investment hedges, the use of the total coupon cash flows in fair value hedges, sub-benchmark hedges, and contract features that limit exposure in cash flow hedges of nonfinancial items.FASB vs the IASB
June 29, Board Meeting —Decisions regarding the qualifying threshold, component hedging for nonfinancial items, benchmark interest rates, application issues related to fair value hedges of interest rate risk, the shortcut method, and presentation and disclosures. June 10, Board Meeting —Discussions about hedges of benchmark interest rate risk and overall changes to the hedge accounting model.
May 27, Board Meeting —Discussions about the presentation of hedge ineffectiveness, disclosures related to cumulative-basis adjustments in fair value hedges, tabular disclosures about the effect of hedge accounting on statement of financial performance line items, and hedge documentation requirements.
April 22, Board Meeting —Discussions about selected benchmark interest rate hedging issues, shortcut and critical terms match methods, and the effectiveness threshold for hedges of financial assets and liabilities. April 7, Board Meeting —Discussions about the presentation of hedge ineffectiveness, defining a reasonably effective threshold, fair value hedges of nonfinancial items, disclosures for hedges of nonfinancial items, and qualitative effectiveness testing.
February 25, Board Meeting —Discussions about the effectiveness threshold and qualitative versus quantitative testing of hedge effectiveness, as well as component hedging for nonfinancial items. The Board also discussed their preferences regarding the approach in carrying out the hedge accounting project. The FASB believes that seeking more comparable global accounting standards—improving the quality of accounting standards used around the world while reducing differences among those standards—is consistent with its core mission.
Investors, companies, auditors, and other participants in the U. More comparable standards have the potential to reduce costs for both users and preparers of financial statements and make worldwide capital markets more efficient. The Securities and Exchange Commission SEC expects the FASB to consider, in developing standards, the extent to which international comparability is necessary or appropriate in the public interest and for the protection of investors.
The FASB believes that the high-quality standards it develops will continue to influence the shape and future direction of international standards, as they have for more than 40 years. By creating high-quality standards through a best-in-class standard-setting process, the FASB serves as a reference point and benchmark for others.
In other words, we will continue to lead by setting an example of excellence. This also would enhance international comparability for the benefit of investors and other capital market participants. This evaluation happens on a standard by standard basis. However, in the statement approved February 24, the SEC said while it is not pursuing an early adoption option, it could reconsider this position later.
By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. Furthermore, companies with subsidiaries in countries that require or permit IFRS may be able to use one accounting language company-wide.
Companies may also benefit by using IFRS if they wish to raise capital abroad. What could be the disadvantages of converting to IFRS?
Despite a belief by some of the inevitability of the global acceptance of IFRS, others believe that U. They may believe that the significant costs associated with adopting IFRS outweigh the benefits. What is the difference between convergence and adoption? Convergence means that the U.
More convergence will make adoption easier and less costly and may even make adoption of IFRS unnecessary. Supporters of adoption, however, believe that convergence alone will never eliminate all of the differences between the two sets of standards. The key players are the Securities and Exchange Commission, which is responsible for the supervision and regulation of the securities industry and has oversight responsibility for the FASB; the Financial Accounting Standards Board, an independent body that establishes and interprets U.
Back to Top Have any major U. Until the Securities and Exchange Commission issues a rule allowing or requiring U. Several large multinational corporations, however, have started using IFRS for their foreign subsidiaries where allowed by local law.
Comparability in International Accounting Standards
The biggest difference between U. Its guidance regarding revenue recognition, for example, is significantly less extensive than U. IFRS also contains relatively little industry-specific instructions. Yet significant differences do remain, most any one of which can result in significantly different reported results, depending on a company's industry and individual facts and circumstances.