Financial Management

International Financial Reporting Standards (IFRS) — an AICPA Backgrounder
The growing acceptance of International Financial Reporting Standards (IFRS) as a basis for U.S. financial reporting represents a fundamental change for the U.S. accounting profession.
International Financial Reporting Standards (IFRS) — Questions and Answers
Questions and answers developed by American Institute of Certified Public Accountants.

December 5, 2011
U.S. Subsidiary Loses LIFO Benefit
The IRS rules a U.S. subsidiary violated LIFO conformity rules when using LIFO in reports prepared for its foreign parent and in statements presented to its bank. Read an overview of the ruling and how the Company lost its LIFO benefit in report by CFO.com.
June 28, 2011
IAS 19 Employee Benefits Impacts
Compliance Week reports GAAP-based companies are reviewing their accounting policies on post-employment benefits including pensions to what International Accounting Standard 19 would require. (Compliance Week)
May 17, 2011
Video: How IFRS Could Change Corporate Finance
Colleen Cunningham, CPA, explains how a move to IFRS in the U.S. could give rise to new litigation concerns and encourage outsourcing of certain finance functions. (Journal of Accountancy)
April 11, 2011
IFRS Foundation to Add Common-Practice Tags to IFRS Taxonomy
The IFRS Foundation said it will publish supplementary tags for the IFRS Taxonomy that reflect disclosures that are commonly reported by entities in their IFRS financial statements. (Journal of Accountancy)
January 18, 2011
IFRS Foundation publishes proposed IFRS Taxonomy 2011
January 18, 2011 - The IFRS Foundation today published for public comment an exposure draft of the IFRS Taxonomy 2011. (IFRS.org)
December 13, 2010
IASB Issues Guidance on Management Commentary
The International Accounting Standards Board (IASB) published an IFRS Practice Statement Management Commentary, which the standard setter said is a broad, nonbinding framework for the presentation of narrative reporting to accompany financial statements prepared in accordance with IFRSs. (Journal of Accountancy)
December 1, 2010
Accounting for Leases Will Be Challenging
CFO Magazine analyzes proposed changes to lease accounting rules. The comment period for the FASB/IASB proposals is open until December 15, 2010.
November 12, 2010
Stephen Cooper: Lessor accounting – what really are the lessor's assets?
IASB member Stephen Cooper writes about proposed rule changes for lessor accounting and asks for input from investors. (IFRS.org)
October 18, 2010
IFRS Webcast Highlight – Revenue Recognition
October 18, 2010 – Excerpt from the 3rd Quarter IFRS Webcast. Panelists discuss how collectibility and time value of money affect determination of the transaction price under revenue recognition proposals from FASB and IASB.
August 19, 2010
Video: Revenue Recognition
August 19, 2010 – Kim Kushmerick, AICPA Technical Manager - Accounting Standards, provides an overview of the Revenue Recognition Exposure Draft issued by the U.S. Financial Accounting Standards Board and the International Accounting Standards Board. (AICPA)
August 18, 2010
Proposal Would Require Most Leases to Appear on the Balance Sheet
FASB and the International Accounting Standards Board (IASB) unveiled a joint proposal to revamp lease accounting. The proposal would result in a single "right-of-use" approach applied consistently to lease accounting for lessees and lessors. (Journal of Accountancy)
August 2, 2010
MD&A Disclosures Relating to Financial Instruments
When reading financial statements prepared under International Financial Reporting Standards (IFRS), you may be surprised by the notes and disclosures section. (CPA Insider)
June 25, 2010
Big Changes Proposed for Revenue Recognition
June 25, 2010 - FASB and the IASB on Thursday released a proposal that would create a single revenue recognition standard for both U.S. GAAP and IFRS. The standard is designed to streamline accounting for revenue across industries and correct inconsistencies in existing standards and practices. (Journal of Accountancy)
April 30, 2010
IASC Foundation releases IFRS Taxonomy 2010
April 30, 2010 - The International Accounting Standards Committee (IASC) Foundation today released the International Financial Reporting Standards (IFRS) Taxonomy 2010. (IASB.org)
April 15, 2010
Financial System Considerations in IFRS Conversion Projects
April 15, 2010 – Prepared by the Information Technology Section of the AICPA, this white paper explores information technology implications of an IFRS conversion, including the impact on financial and business reporting, implementation considerations and lessons learned from the European experience.
March 25, 2010
Technology Considerations for Converting to IFRS
March 25, 2010 – Lewis A. Dulitz, vice president of accounting policies and research at Covidien, was part of a team that implemented the necessary technology changes in Europe to help Covidien convert to IFRS and led a similar team in the U.S. He answered questions from the Journal of Accountancy about the experience and provided advice for other companies to consider.
January 29, 2010
IT Participation in IFRS Conversion is Essential
As Canadian companies prepare for IFRS, this CFO.com addresses how companies have learned the importance of involving information-technology leaders in the conversion process.
January 27, 2010
Deloitte Report Recommends Creating Judgment Framework
The report focuses on how a judgment framework can help remove biases in financial decision making. (PR Newswire)
December 11, 2009
Getting to IFRS: Those Who Have Been There Have Plenty of Advice
When asked for their advice on how companies should be preparing for the possibility of mandated IFRS adoption in the U.S., the three international financial executives kept returning to a few common themes: start now, treat it as an opportunity, and make sure your entire organization is invested in the change. The executives made their remarks at the "Preparers' Perspectives" panel at the AICPA/IASC Foundation Conference on International Financial Reporting Standards held in New York City.
September 29, 2009
Implications of Capitalizing Development Costs
Why U.S. companies may need to consider the systems that are in place with a view to upgrading the level of data captured many years before the transition to IFRS. (AICPA CPA Insider)
September 18, 2009
IFRS for the United States: Making the Talent Transition
Many agree that movement towards a single set of high quality global accounting standards is an important goal. The SEC issued a proposed roadmap that could lead to mandatory adoption of International Financial Reporting Standards. Although there is uncertainty regarding the IFRS roadmap, there are preliminary steps companies can take to prepare for the possibility that IFRS may be adopted in the U.S. Robert Half Management Resources has prepared a whitepaper with information on how your organization can start preparing for IFRS.
August 20, 2009
Leverage Your SOX Investment for Conversion to IFRS
In this installment of the Journal of Accountancy's "Steps to Success", Ernst & Young’s Steve Arnold, CPA, explains how to leverage your Sarbanes-Oxley investment for conversion to IFRS. (VIDEO)
August 25, 2009
IFRS Risk Planning and Controls Execution
Staff responsible for internal control over financial reporting (ICFR) under Sarbanes-Oxley (SOX) section 404 and operational audits will need to understand how your company plans to apply IFRS so they can take appropriate actions based on both operational risks and the risk of material weakness in ICFR. (Journal of Accountancy)
August 14, 2009
Proposed Changes to Lease Accounting are Significant
Boston/SF provides an overview of proposed changes to lease accounting included in the FASB/IASB joint discussion paper on leases.
August 14, 2009
XBRL U.S. GAAP Tags Now Aligned to FASB Accounting Codification
The XBRL U.S. GAAP Taxonomy has been updated to reflect the FASB Accounting Standards Codification and is effective for interim and annual periods ending after Sept. 15, 2009. (Journal of Accountancy)
August 3, 2009
E&Y Report Inside IFRS The Opportunity for IT
WebCPA provides an overview of an Ernst & Young report, which addresses the complexity, challenges and opportunities for IT in an IFRS conversion.
July 1, 2009
Accounting for Emissions
The Journal of Accountancy introduces practitioners to the fundamental issues concerning emissions of greenhouse gases and the key elements of "cap and trade programs".  The article also examines attempts by standard setters to fill the void in the authoritative accounting guidance in this area and the consequences of the diverse accounting practices that have emerged globally.
June 24, 2009
Case Study: U.S. Subsidiaries of Foreign Companies Already Well Versed in IFRS
An increasing number of CPAs in the United States are gradually gaining experience with International Financial Reporting Standards (IFRS). While most U.S. public companies are waiting for the Securities and Exchange Commission (SEC) to decide on a definitive strategy or timetable for either convergence of U.S. GAAP with IFRS or full IFRS adoption, many financial executives at U.S. subsidiaries of foreign-owned firms are doing double duty. Read about the experiences of three U.S. financial executives that are currently using IFRS.
June 9, 2009
Preparing for IFRS
Writing for Compliance Week, Tammy Whitehouse describes how two accounting officers are preparing for IFRS. In addition to accounting and reporting matters, identifying business issues is an important part of early preparation work.
April 3, 2009
IASC Foundation Issues IFRS Taxonomy 2009
The International Accounting Standards Committee (IASC) Foundation issued the IFRS Taxonomy 2009 and published the Due Process Handbook for XBRL Activities for public comments.
April 1, 2009
IFRS Can be Opportunity to Transform Finance Functions

Accountancy Age reports on an Accenture survey which indicates that while costly and complex many respondents believe an IFRS conversion will present an opportunity to make improvements within finance functions. A link to the Accenture survey can be found here.

March 30, 2009
Case Study: Laying the Groundwork for IFRS

United Technologies IFRS Financial Reporting Manager Matthew Birney sees both positives and negatives of IFRS coming to the United States and is looking forward to more certainty from the Securities and Exchange Commission about the direction it will take..

March 25, 2009
IFRS: A Preparer's Point of View

An industry-based CPA experienced in adoption of International Financial Reporting Standards (IFRS) shares insights and strategies for a successful transition to IFRS with the Journal of Accountancy.

March 24, 2009
IFRS Converges to U.S. GAAP on Segment Reporting

The Journal of Accountancy provides a summary of IFRS 8 Operating Segments. The new standard supersedes IAS 14 and closely resembles the "through the eyes of management" approach of FASB Statement No. 131.

February, 2009
Converting to IFRS

The SEC's proposed roadmap for the potential use of IFRS could result in mandatory use of international financial reporting standards beginning in 2014. The Journal of Accountancy presents a summary of key activities that will contribute to a successful conversion.

January 8, 2009
IFRS: Industry Specific Considerations - Deloitte LLP
Deloitte’s IFRS resource library offers several publications addressing industry specific considerations for U.S. companies.  Several industries are covered, including the following:
  • Technology
  • Aerospace and Defense
  • Retail
  • Oil and Gas
  • Automotive
  • Tourism, Hospitality and Leisure
January 2, 2009
Death of LIFO?

International Financial Reporting Standards do not permit the use of the last-in, first-out (LIFO) method of accounting for inventories.  The proposed shift of U.S. public companies to IFRS could affect many companies currently using LIFO.  The Journal of Accountancy explores the accounting and tax ramifications of a change from LIFO.

December 24, 2008
Georgia Tech Financial Analysis Lab Releases LIFO Study
The Georgia Tech Financial Analysis Lab released a study titled The Potential Consequences of the Elimination of LIFO as part of IFRS Convergence.
December 17, 2008
IFRS Taxonomy Module Manager released..
The International Accounting Standards Committee Foundation announced the release of the IFRS Taxonomy Module Manager (ITMM 3.0) with Viewer functionality. Based on IFRS Taxonomy 2008, the license-free ITMM 3.0 offers taxonomy users many new features.
November 25, 2008
Revenue recognition is not any easier under IFRS.
Laurie Brannen reports in Business Finance on a 2008 survey conducted by RevenueRecognition.com covering complexities and risks associated with revenue reporting under U.S. and international rules. Survey link (registration required)
November 21, 2008
Case Study: Acquisition Results in Accelerated Adoption of IFRS
After the acquisition by a foreign company, the Financial Director of a U.S. corporation learns a month before year-end that he will have to report results using International Financial Reporting Standards.
November, 2008
Shaking Up Financial Statement Presentation
The Journal of Accountancy takes an early look at the FASB and IASB Financial Statement Project.
July 31, 2008
IFRS and Income Taxes
With international financial reporting standards on the horizon, how will income taxes be affected?
May 2008
Interest Capitalization: One Small Step Toward Convergence
Convergence generally involves standard setters working together to achieve a standard that is superior to either of their existing standards.
March 6, 2008
XBRL and IFRS Joining Hands
The movement towards a single set of global financial reporting standards is gaining speed in the United States. The Security and Exchange Commission's (SECs) concept release on the use of International Financial Reporting Standards (IFRS) by U.S. companies has put real meaning into this trend.
March 6, 2008
Is That a Light at the End of the IFRS Tunnel or Just Another Train?
Overall, it would be prudent for small U.S. public companies that own international units and considering reporting under IFRS to access international markets to commence implementation efforts sooner rather than later.
October 18, 2007
New-Age Skills for Accounting Professionals
Business today is more connected and more integrated internationally, with interactions and transactions spanning continents. According to the Robert Half International Financial Leadership Council, the relentless progress of globalization means that U.S.-based accounting professionals can no longer rely solely on the rules and standards they learned in the past.