IFRS Adoption Update

• Over 100 countries have already adopted IFRS for public company filings
• In 2012, the USA Securities & Exchange Commission (SEC) was concerned that, among other things, a wholesale switch to international standards would strain the resources of US companies and that a staged transition has more support
• The SEC has yet to issue a final decision, but the likelihood is that international standards will be incorporated into US GAAP slowly over the next few years through a condorsement process

New Standards

• The IASB and the FASB anticipate finalizing major new standards defining Revenue Accounting and Lease Accounting during 2013 and anticipate publishing both as updates to US GAAP and IFRS
• Both standards have transitional reporting requirements that may be effective as soon as 2014 with new transactions expected to be effective 2016 or 2017
• All US GAAP and IFRS public companies having Revenue or Leasing transactions should immediately start evaluating the impact this will have on their operations and accounting as well as studying the impact that IFRS or modified US GAAP rules will have on their systems and processes
• In many cases, the existing state of convergence between IFRS and US GAAP and the arrival of new standards will require companies to support multiple reporting standards at group/corporate and subsidiary levels far more widely than before