CPA Voice November 2011 : Page 4
Latest News FASB chair favors “condorsement” FASB Chair Leslie Seidman said she supports the “condorsement” approach to incorporate IFRS in the U.S. “I think the ‘condorsement’ process outlined by the SEC staff has many positive aspects,” said Seidman. “First, ‘condorsement’ shows U.S. support for the ongoing development of global accounting standards. As I mentioned, FASB has demonstrated a strong and continuing commitment to making progress in this area. Second, ‘condorsement’ adopts the very practical approach of retaining the label ‘U.S. GAAP.’ In other words, regardless of the way IFRS is brought into the U.S., it’s easier on the system if it’s called U.S. GAAP for federal and state legislative and regulatory purposes, contractual covenants and those kinds of things.” Majority of CPAs support optional IFRS adoption In related news, a majority of CPAs support optional adoption of IFRS for public companies, according to the AICPA’s most recent IFRS Readiness Tracking Survey. Optional adoption would let publicly traded U.S. companies use IFRS, while the SEC decides whether to incorporate the standards into U.S. reporting requirements. The choice also would apply during the implementation phase, if the SEC accepts the standards. Support for IFRS remains high among AICPA members. But the survey found that, in the absence of a clear regulatory timetable, U.S. fi rms and organizations continue to delay planning and preparation for the global standards. Key survey fi ndings: • Almost 54% of members support optional adoption of IFRS standards, while 18% said the SEC should not allow an option to use IFRS. The rest were unsure. • Some 44% of respondents said they were delaying IFRS preparations until the SEC reaches a decision. • Some 36% of survey takers said they were aware of the concept of “condorsement,” the hybrid approach of endorsement and convergence on a standard-by-standard basis. • The survey shows that 79% of CPAs have at least basic knowledge of IFRS, a level that has remained virtually unchanged since May 2010. The level of familiarity ranges from rudimentary understanding of high-level concepts to suffi cient expertise to train others. DON’T BE LEFT OUT IN THE COLD! Oswald Companies presents an exclusive offer to OSCPA members only Accountants Professional Liability Risk Purchasing Group By leveraging the purchasing power of all participating members, we are able to “pool” the collective insurance needs of the group and provide the following benefits: • • • • • Preferred pricing Enhanced coverage offerings Underwriting flexibility Multiple payment options Multi-year policy options See if you qualify. Contact Carmen Edgehouse: cedgehouse@oswaldcompanies.com 216-658-5202 The endorsed broker of The Ohio Society of CPAs 4 The Ohio Society of CPAs | CPA Voice | November 2011
FASB Chair Favors “Condorsement”
FASB Chair Leslie Seidman said she supports the “condorsement” approach to incorporate IFRS in the U.S. <br /> <br /> “I think the ‘condorsement’ process outlined by the SEC staff has many positive aspects,” said Seidman. “First, ‘condorsement’ shows U.S. support for the ongoing development of global accounting standards. As I mentioned, FASB has demonstrated a strong and continuing commitment to making progress in this area. Second, ‘condorsement’ adopts the very practical approach of retaining the label ‘U.S. GAAP.’ In other words, regardless of the way IFRS is brought into the U. S., it’s easier on the system if it’s called U.S. GAAP for federal and state legislative and regulatory purposes, contractual covenants and those kinds of things.”<br /> <br /> Majority of CPAs support optional IFRS adoption <br /> <br /> In related news, a majority of CPAs support optional adoption of IFRS for public companies, according to the AICPA’s most recent IFRS Readiness Tracking Survey.<br /> <br /> Optional adoption would let publicly traded U.S. companies use IFRS, while the SEC decides whether to incorporate the standards into U.S. reporting requirements. The choice also would apply during the implementation phase, if the SEC accepts the standards.<br /> <br /> Support for IFRS remains high among AICPA members. But the survey found that, in the absence of a clear regulatory timetable, U.S. firms and organizations continue to delay planning and preparation for the global standards.<br /> <br /> Key survey findings:<br /> <br /> • Almost 54% of members support optional adoption of IFRS standards, while 18% said the SEC should not allow an option to use IFRS. The rest were unsure.<br /> <br /> • Some 44% of respondents said they were delaying IFRS preparations until the SEC reaches a decision.<br /> <br /> • Some 36% of survey takers said they were aware of the concept of “condorsement,” the hybrid approach of endorsement and convergence on a standard-by standard basis.<br /> <br /> • The survey shows that 79% of CPAs have at least basic knowledge of IFRS, a level that has remained virtually unchanged since May 2010. The level of familiarity ranges from rudimentary understanding of high level concepts to sufficient expertise to train others.
