GAAP and IFRS
Outline
Part 1 Background and Overview
Part 2 US GAAP and IFRS
Part 3 China GAAP and IFRS
Part 4 Summary of Convergence Process
Part 5 Pros & Cons of Convergence
Part 6 The reasons for differences in accounting practice
ww.ifrs.org
+ The International Accounting Standards Board
+ The International Accounting Standards Committee (IASC) Foundation
+ Objective – a single set of global financial reporting standards
+ Aim – convergence between national standards and international
standards
+ IFRS Framework
+ IFRS SMEs
+ Supported by the Group of 20 Leaders (G20) who, at their September
2009 meeting in Pittsburgh, US.
Country
Status for listed companies as of April 2010
Argentina Required for fiscal years beginning on or after 1 January 2011
Australia
Required for all private sector reporting entities and as the basis for public sector reporting since 2005
Brazil
Required for consolidated financial statements of banks and listed companies from 31
December 2010 and for individual company accounts progressively since January 2008
Canada
Required from 1 January 2011 for all listed entities and permitted for private sector entities including not-for-profit organizations
Country
Status for listed companies as of April 2010
China
Substantially converged national standards
European All member states of the EU are required to use IFRSs as adopted by the EU for listed
Union
companies since 2005
France
Required via EU adoption and implementation process since 2005
Germany
Required via EU adoption and implementation process since 2005
India
India is converging with IFRSs at a date to be confirmed.
Indonesia
Convergence process ongoing; a decision about a target date for full compliance with
IFRSs is expected to be made in 2012
Italy
Required via EU adoption and implementation process since 2005
Japan
Permitted from 2010 for a number of international companies; decision
Part 1 Background and Overview
Part 2 US GAAP and IFRS
Part 3 China GAAP and IFRS
Part 4 Summary of Convergence Process
Part 5 Pros & Cons of Convergence
Part 6 The reasons for differences in accounting practice
ww.ifrs.org
+ The International Accounting Standards Board
+ The International Accounting Standards Committee (IASC) Foundation
+ Objective – a single set of global financial reporting standards
+ Aim – convergence between national standards and international
standards
+ IFRS Framework
+ IFRS SMEs
+ Supported by the Group of 20 Leaders (G20) who, at their September
2009 meeting in Pittsburgh, US.
Country
Status for listed companies as of April 2010
Argentina Required for fiscal years beginning on or after 1 January 2011
Australia
Required for all private sector reporting entities and as the basis for public sector reporting since 2005
Brazil
Required for consolidated financial statements of banks and listed companies from 31
December 2010 and for individual company accounts progressively since January 2008
Canada
Required from 1 January 2011 for all listed entities and permitted for private sector entities including not-for-profit organizations
Country
Status for listed companies as of April 2010
China
Substantially converged national standards
European All member states of the EU are required to use IFRSs as adopted by the EU for listed
Union
companies since 2005
France
Required via EU adoption and implementation process since 2005
Germany
Required via EU adoption and implementation process since 2005
India
India is converging with IFRSs at a date to be confirmed.
Indonesia
Convergence process ongoing; a decision about a target date for full compliance with
IFRSs is expected to be made in 2012
Italy
Required via EU adoption and implementation process since 2005
Japan
Permitted from 2010 for a number of international companies; decision