IFRS Insights Flashcards
Internatl Financial Reporting Standards
international accting standards developed by the International Accting Standards Boards (IASB)
SEC allows foreign companies that trade shares in US to
file their IFRS financial statements without reconciliation to GAAP.
IFRS tends to be simpler in its accounting and disclosure requirements. It is said to be _____, while GAAP is more _____.
Principle-based; Rules based
International Organization of Securities Commissions
dedicated to ensuring that the global markets can operate in an efficient and effective basis.
IOSCO Memo of Understanding
2005, facilitate cross-border cooperation, reduce global systemic risk, protect investors, and ensure fair and efficient securities markets.
Internatl Accting Standards Committee Foundation (IASCF)
selects members of the IASB and Standards Advisory Council, funds their activities, and generally oversees the IASB’s activities
Standards Advisory Council
consults with IASB on major policy and technical issues and also helps select task force members.
Internatl Financial Reporting Interpretations Committee (IFRIC)
develops implementation guidance for consideration by the IASB
3 types of pronouncements by IASB
- Internatl Financial Reporting Standards
- Framework for financial reporting
- Internatl financial reporting interpretations
Framework for Financial Reporting
sets forth fundamental objectives and concepts that the boards uses in developing future standards of financial reporting
Hierarchy of IFRS
- Internatl Financial Reporting Standards
- Internatl Accting Standards
- Interpretations originated by the IFRIC or the former Standing Interpretations Committee (SIC)
Year US should be required to use IFRS
2015
Diff b/w GAAP and IFRS conceptual framework
not much; no need to really change either one - just need to merge them together
Fair value
IFRS has adopted FV reporting more broadly, but GAAP is allowing it
IFRS Financial Statement elements
Assets, liabilities, equity, income, expenses
