New Publication Highlights Major Accounting Developments of Past Year

October 4, 2010 (SmartPros) — With another SEC announcement on the use of IFRS in the US expected in 2011, PwC releases new edition of IFRS and US GAAP: Similarities and differences.

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PwC US released an updated edition of its popular IFRS and US GAAP: Similarities and differences guide.  Its purpose is to improve companies’ understanding of the changes to, and major differences between, International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP).

 

The 2009 edition was PwC’s most-downloaded publication.

 

Even without a set conversion timeline from the SEC, IFRS has been affecting US companies for some time — through business dealings with non-US customers and vendors, along with the use of IFRS for statutory purposes by some non-US subsidiaries.  In addition, US companies will experience an unprecedented change in accounting standards as key aspects of US GAAP and IFRS converge.

Amidst that backdrop, the 2010 edition of PwC's guide IFRS and US GAAP: Similarities and differences alerts companies to the timing and scope of changes that US GAAP/IFRS convergence, and the possible use of IFRS in the United States will bring about.  It also provides context, showing how convergence with, or adoption of, IFRS has ramifications far beyond companies' accounting departments.

“Regardless of SEC rulings or delays in the US adoption of IFRS, companies should educate themselves on this topic to prepare for the future of their businesses,” PwC's US Convergence & IFRS Leader Jim Kaiser said.  “Our guide helps companies navigate these issues, explaining the implications of US GAAP/IFRS differences in a comprehensive way. Similarities and differences is an important tool many companies rely on year after year,” Kaiser added.

The guide has been updated to reflect the major changes related to market conditions and accounting standards over the past year, with an overview of the new IFRS for Small and Medium-sized Entities standard. Further updates include:

• Commentary and insight with respect to recent and proposed guidance, including developments pertaining to the overall convergence agenda;
• Report on the US GAAP codification project;
• More detailed analysis of current differences between the frameworks including an assessment of the impact embodied within the differences; and
• Updates incorporating authoritative standards and interpretive guidance issued through June 30, 2010.

Guided by the 2010 edition of IFRS and US GAAP: Similarities and differences, both public and private organizations will gain a greater understanding of what their next steps should be to ensure they have allowed themselves sufficient time to prepare for transition.  For more on PwC's IFRS resources, visit www.pwc.com/USifrs.