International Accounting

							International Accounting
Institutional developments
   IASC founded in 1973
   EEC/EU issued 4th & 7th Directives
   1980s IOSCO prodded IASC
       2000 IOSCO accepts IAS’s
       2005 EU accepts IAS’s
       But will the SEC?
   US, UK, Canada & Australia form a bloc
IASB 2001
   History = CAP to APB
   Board has 12 FT + 2 PT members
       Five must have been auditors
       Three must have been preparers
       Three must have been users
       A token academic!
   No enforcement ability though
Dealing with change
   Europeans distinguish between
    statutory unconsolidated statements
    and IASC based consolidated ones
   Nations cherry pick
   Nations fail to enforce
   US tried to ignore the challenge
Wyatt & Yospe
   Americans believe they are the best
       Cf beliefs about American medicine
   IASC is on the march said W&Y
       Get ready to join them
       EPS is a harbinger of things to come
       Capital is fluid esp. with the Internet
US vs the world
   IASB seeks broad principles
       So did the US but . . .
       Litigation, and a desire to push the
        envelope in the US, has driven us to long,
        detailed mechanical rules
            Are these more comprehensive &
             sophisticated?
            Or are they just more voluminous & uniform?
Larson & Kenny
   US is in compliance with IAS’s
       US companies can list abroad with ease!
            We tend to think of movement TO not AWAY
            NY frets US corps might move overseas!


   Will the US remain in compliance?
       Most suspect they will
       Will the FASB take the IASB over?
Lee Berton (WSJ)
   Will we all speak the same language?
   SEC is being prodded by the NYSE
       Blow London off the map
       Was being blown to Frankfurt --!
   SEC is beginning to soften
       Cash flows, earnings per share,
        consolidations (proposed)
Role of FASB
   What role will the FASB play, if any, if
    we adopt IASB standards?
   What role will the British ASB play?

   But, does the IASB have the staff and
    money to handle this role?
       And who will enforce the rules?