Author: Aditya Singhal

IFRS Introduction – Applicable costs

Did you see a high level list of the metrics that you need to capture and should avoid in an outsourcing engagement? http://faoblog.com/transition-10/ —————————————————————————————————- What will be the costs of implementation of IFRS? One critical question that companies are brooding on is related to the costs of implementation for IFRS. The implementation with require a change and training efforts. The costs would be determined largely by the size and nature of the respective company. While the initial cost to identify and quantify the differences between U.S. GAAP and IFRS, staff training and implementing IT support could be significant, the...

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IFRS Introduction – IFRS Vs. US GAAP.

Visit our Finance and outsourcing blog at http://faoblog.com/transition-09/ for more on metrics. —————————————————————————————– When we compare the current most widely used reporting standard US GAAP with IFRS, some things stand out. The biggest difference between U.S. GAAP and IFRS is that IFRS provides much less overall detail. Its guidance regarding revenue recognition, for example, is significantly less extensive than U.S. GAAP. IFRS also contains relatively little industry-specific instructions. In IFRS a hundred percent compliance is mandatory, and unlike the Indian and other reporting standards, no “subject to” can be resorted to. Because of longstanding convergence projects between the IASB and the...

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IFRS Introduction – Covergence Vs. adoption – professions affected

Yesterday’s post in FAO Blog was on Metrics: http://faoblog.com/transition-08/ ————————————————————————————————— While IFRS is being deployed, we frequently use the term convergence and adoption. So, what is the distinction between the two? The distinction is fairly simple. Adoption is full deployment of the IFRS standards, while convergence signifies making the accounting reports compatible. Adoption would mean that the SEC sets a specific timetable when publicly listed companies would be required to use IFRS as issued by the IASB. Convergence means that the U.S. Financial Accounting Standards Board (FASB) and the IASB would continue working together to develop high quality, compatible...

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IFRS – Introduction – US adaptation

On the FAO Blog, if you read the update on business metrics on Saturday, you would have understood clearly the difference between business metrics and operational metrics. Here is the link to the post: http://faoblog.com/transition-07/ ——————————————————————– In one previous post we talked about the US adapting IFRS: http://faoblog.com/ifrs/intro05/ More on this today. Bodies in the United States responsible for the development and adoption of IFRS The key player in the United States is the Securities and Exchange Commission, which is responsible for the supervision and regulation of the securities industry and has oversight responsibility for the FASB (the Financial...

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IFRS Introduction – Advantages / disadvantages

Did you know what the difference between SLA and SLE really is? See our FAO post http://faoblog.com/transition-06/ ——————————————————————————————————— Advantages of converting to IFRS Well, globalization to start with for sure. By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. Furthermore, companies with subsidiaries in countries that require or permit IFRS may be able to use one accounting language company-wide. Companies also may need to convert to IFRS if they are a subsidiary of a foreign company that must use IFRS, or if they have a foreign investor...

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IFRS – Introduction – US moving to IFRS

Did you see the post on FAO SLAs yesterday? http://faoblog.com/transition-5/ ————————————————————————————————- US GAAP Vs. IFRS US has been following the US GAAP till now. A question arises whether the Securities and Exchange Commission will substitute IFRS for GAAP. For many years, the SEC has been expressing its support for a core set of accounting standards that could serve as a framework for financial reporting in cross-border offerings. On February 24, 2010, the SEC issued release Nos. 33-9109 and 34-61578, Commission Statement in Support of Convergence and Global Accounting Standards. In the release, the SEC stated its continued belief that...

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IFRS-Introduction – statements – who is adopting

Did you see this interesting article from Economic times, lessons from Rahul Dravid ? You can get it on our finance and outsourcing blog. http://faoblog.com/lessons-rahul-dravid-6-traits-workplace/ What constitutes IFRS statements? Statement Details IFRS 1 First-Time Adoption of IFRS IFRS 2 Share-Based Payment IFRS 3 Business Combinations IFRS 4 Insurance Contracts IFRS 5 Noncurrent Assets Held for   Sale and Discontinued Operations IFRS 6 Exploration for and   Evaluation of Mineral Resources IFRS 7 Financial Instruments:   Disclosures IFRS 8 Operating Segments IFRS 9 Financial Instruments   Who has or is adopting IFRS? You won’t believe me, approximately 120 nations and...

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IFRS – Introduction

What Constitutes the IFRS Organization? MONITORING BOARD 4 Members and 1 Observer Appoints and Oversee Trustees IFRS FOUNDATION 22 TRUSTEES Appoint and Oversee board members and Raise Funds The foundation flows into two components: IASB 16 Members (Maximum 3 part time) Sets Technical Agenda, Approve Standards, Exposure Drafts and Interpretations IFRS INTERPRETATIONs COMMITTEE 14 Members Work on Interpretations    What Constitutes Complete Set of IFRS? IASC – International Accounting Standards Committee Publication of 41 IAS  by IASC from 1973 to 2001 (not renamed) IASB – International Accounting Standard Board Publication of 9 IFRS  by IASB from 2001 to till...

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IFRS – Introduction – IASB

Happy Holi to all our Indian readers. A note on IASB: The International Accounting Standards Board (IASB) is an independent accounting standard-setting body, based in London. It consists of 15 members from nine countries, including the United States. The IASB began operations in 2001 when it succeeded the International Accounting Standards Committee. It is funded by contributions from major accounting firms, private financial institutions and industrial companies, central and development banks, national funding regimes, and other international and professional organizations throughout the world. While the AICPA (American Institute of Certified Public Accountants) was a founding member of the International...

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IFRS Introduction

Hi readers, we are commencing our IFRS journey of our blog today. We wanted to start last week, but due to some technical hitches could not do so. One question which comes at the forefront “What is IFRS?” IFRS stands for “International Financial Reporting Standards” These are a set of accounting standards developed by the International Accounting Standards Board (IASB). A lot of organizations are going global as on date, with their corporate base out of that country. This is one of the key reasons why a need started being felt for a unified and transparent mechanism of worldwide...

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