IFRS Implementation Around the World (2008)

The International Financial Reporting Standards (IFRS) is a single set of accounting standards developed by the IASB (International Accounting Standards Board). Public companies in at least 100 countries now prepare financial statements using IFRS. The map below shows the status of IFRS implementation around the world.

IFRS Implementation Around the World (2008)

IFRS is a less extensive body of literature than is U.S. GAAP. It does not include extensive industry-specific guidance and in many instances, IFRS contains similar concepts but does not contain the same amount of detailed implementation guidance as does U.S. GAAP.

Because of the less-detailed guidance, there are more circumstances where application of IFRS will require exercise of judgment, which will need to be supported by contemporaneous analysis. IFRS requires clear, transparent disclosures of critical accounting policies and estimates, particularly in areas requiring application of judgment.

SEC to Determine Next Steps

by Jeff Henson

Read more on Jeff's blogs:

• IFRSUSA.
• XBRLUSA.

The SEC is analyzing comments and determining its next move on IFRS. In the meantime, we would do well to stay IFRS aware and conduct a business impact assessment on how IFRS will affect our businesses. This would be a good time to determine how your financial statements will be impacted by IFRS and to learn more about the convergence project between the FASB and IASB.

The FASB & IASB have several topics on their convergence Agenda including:

• Financial Statement Presentation (Performance Reporting)
• IFRS 2 Share-based Payment Amendment – group cash-settled share-based payment transactions Impairment
• Income Taxes – Reconsideration of IAS 12
• Insurance Contracts – Phase II (Comprehensive Project)
• Joint Ventures – Reconsideration of IAS 31 Leases
• Liabilities (was part of Business Combinations – Phase II)
• Post-employment Benefits including Pensions
• Rate-regulated Activities
• Related Party Disclosures
• Revenue Recognition
• (IFRS for) Small and Medium-sized Entities (also referred to as Private Entities and Non-publicly Accountable Entities)
• Intangible Assets Extractive Activities IFRS XBRL Taxonomy
• Conceptual Framework Project Update
• Business Combinations Project Update
• Financial Statement Presentation
• Revenue Recognition Project Update

As a result of these and other initiatives, the FASB expects to make significant progress toward international convergence in the next few years. However, because of the volume of differences and the complex nature of some issues, the FASB anticipates that many differences between U.S. and international standards will persist.