IFRS Research
Skills for Accounting and Auditing Research
Chapter 12
The International
Research
Environment
© Cambridge Business Publishers, 2014
1
The Global Standard Setting
Environment
© Cambridge Business Publishers, 2014
2
Who Sets “GAAP” Internationally?
A brief history:
• In the past, each country or jurisdiction generally had its own national standard setter.
• Beginning in 1973, the International Accounting Standards Committee
(IASC) began issuing guidance that was largely voluntary.
– Goal: To harmonize global accounting standards.
– Took on a new momentum in 2000, when EU announced plans to adopt.
– In 2001, the IASB replaced the IASC.
• Today, nearly 120 countries require or permit the use of IFRS.
– Notably, some significant economies have not yet (fully) adopted IFRS: for example, Japan, China, and the U.S.
– Some countries have adopted IFRS but retained their national standard setters, and reserve the right to carve out guidance they do not want to adopt.
© Cambridge Business Publishers, 2014
3
The IFRS Foundation
• Organization of the IFRS Foundation
– IFRS Foundation Trustees
– IFRS Foundation Monitoring Board
• Comprises representatives of capital markets authorities
• Criteria for membership
– Two standard-setting bodies:
• The International Accounting Standards Board (IASB)
• The IFRS Interpretations Committee (IFRIC)
– Advisory bodies
• Challenging mission
• Funding
© Cambridge Business Publishers, 2014
4
Standard Setters of the IFRS Foundation
• IASB
– 16 full-time Board members
– Representing a diversity of countries and constituencies
– Issues “full” IFRS and IFRS for SMEs, approves issuance of IFRIC guidance
• IFRS Interpretations Committee (IFRIC)
– Intended to respond, in a timely manner, to issues that arise regarding the clarity or application of IFRS guidance – Criticisms
© Cambridge Business Publishers, 2014
5
When Is IFRS Relevant in the U.S.?
• Currently, IFRS is relevant in the U.S. in the following cases:
– Foreign private
Chapter 12
The International
Research
Environment
© Cambridge Business Publishers, 2014
1
The Global Standard Setting
Environment
© Cambridge Business Publishers, 2014
2
Who Sets “GAAP” Internationally?
A brief history:
• In the past, each country or jurisdiction generally had its own national standard setter.
• Beginning in 1973, the International Accounting Standards Committee
(IASC) began issuing guidance that was largely voluntary.
– Goal: To harmonize global accounting standards.
– Took on a new momentum in 2000, when EU announced plans to adopt.
– In 2001, the IASB replaced the IASC.
• Today, nearly 120 countries require or permit the use of IFRS.
– Notably, some significant economies have not yet (fully) adopted IFRS: for example, Japan, China, and the U.S.
– Some countries have adopted IFRS but retained their national standard setters, and reserve the right to carve out guidance they do not want to adopt.
© Cambridge Business Publishers, 2014
3
The IFRS Foundation
• Organization of the IFRS Foundation
– IFRS Foundation Trustees
– IFRS Foundation Monitoring Board
• Comprises representatives of capital markets authorities
• Criteria for membership
– Two standard-setting bodies:
• The International Accounting Standards Board (IASB)
• The IFRS Interpretations Committee (IFRIC)
– Advisory bodies
• Challenging mission
• Funding
© Cambridge Business Publishers, 2014
4
Standard Setters of the IFRS Foundation
• IASB
– 16 full-time Board members
– Representing a diversity of countries and constituencies
– Issues “full” IFRS and IFRS for SMEs, approves issuance of IFRIC guidance
• IFRS Interpretations Committee (IFRIC)
– Intended to respond, in a timely manner, to issues that arise regarding the clarity or application of IFRS guidance – Criticisms
© Cambridge Business Publishers, 2014
5
When Is IFRS Relevant in the U.S.?
• Currently, IFRS is relevant in the U.S. in the following cases:
– Foreign private