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					International Accounting
 and Financial Reporting
       Winter 2009

    William F. O’Brien, MBA, CPA
    Session V

IFRS versus U.S. GAAP-I
           Session V Objectives
       Reporting Levels-a review

       SEC’s Proposed Adoption Roadmap

       IFRS versus U.S. GAAP-I




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                  Reporting Levels
       Level 1: Do nothing
       Level 2: Convenience translation
       Level 3: Currency translation
       Level 4: GAAP disclosure
       Level 5: Partial restatement
       Level 6: Full restatement



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        SEC Proposed Adoption
             Roadmap-I
       Issued 11/14/08; comment period thru 2/19/09
           Political issue-Cox’s baby, will Schipiro
            embrace?
       Early adoption: FYE after 12/15/09
           Makes 12/31/06 initiation date
           Most companies are not ready
           No one is stepping forward


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        SEC Proposed Adoption
             Roadmap-II
       First “normal” adoption: FYE after 12/15/14
           Makes 12/31/11 initiation date
           Later adoption date of FYE after 12/15/16
       Key milestone evaluation 2011-go or no go
           Continued work on convergence
           Resolution of IASB funding and authority issues
           Making IFRS XBRL-ready
           Progress in IFRS education
           Results of the early filer program
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               Types of IFRS
             Differences-p. 115
       Definitions
       Recognition
       Measurement
       Alternatives
       Guidance
       Presentation
       Disclosure

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  Major IFRS Differences-I
       Inventories
       Property, plant and equipment
       Intangibles
       Research & development
       Asset impairment
       Leases
       Discontinued operations
       Extraordinary items
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                         Inventories
       No LIFO under IFRS
       IFRS: NRV; U.S. GAAP: replacement cost
       Write up allowed under IFRS




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        Property, Plant & Equip.
       Revaluation @ FV under IFRS
       Concept of revaluation surplus under IFRS




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                         Intangibles
       Revaluation @ FV (other than goodwill) under
        IFRS




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                                R & D
       Capitalization: technical feasibility versus
        technological feasibility
       Applies to all R & D under IFRS
       Applies only to software under U.S. GAAP




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               Asset Impairment
       Recovery of impairment under IFRS




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                               Leases
       Bright lines under U.S. GAAP
       Less guidance under IFRS




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        Discontinued Operations
       Major line of business and/or geographic area
        under IFRS
       Less restrictive under U.S. GAAP




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            Extraordinary Items
       No extraordinary items under IFRS




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           Key Points-Session V
       IFRS and U.S. GAAP are different
       The SEC’s Adoption Roadmap is no “slam-
        dunk”
       2011 Milestones are key




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