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Friday, January 1, 2010

SEC - IFRS

International reporting standards improves transparency and comparability by moving to a single set of global standards.  SEC provided a roadmap earlier this year to move from U.S. generally accepted accounting principles to IFRS by 2014.

Key thoughts to consider:

  • Consistency of rule interpretation
  • Accounting-change effects
    • Tax and utility-specific regulations
    • Bank covenants
    • Corporate-governance rules
    • Lawsuit contingencies
  • Information-technology systems capabilities
  • Education of accounting profession
  • Fair value recording of assets
The world is global and assessment of financial data should follow accordingly.  The financial profession has a fiduciary responsibility to report fair unbiased information.  The move to IFRS brings global consistency and with any business process standard processes lead to efficient and effective results.

"To state the facts frankly is not to despair the future nor indict the past. The prudent heir takes careful inventory of his legacies and gives a faithful accounting to those whom he owes an obligation of trust." ~ John F. Kennedy


Read more @ SEC: No IFRS Yet

Wiley IFRS: Practical Implementation Guide and Workbook