Convergence of U.S. and international accounting standards is coming and the pace for this evolution is quickening. This convergence is challenging, not only because of its goals, but because of the expectations of financial statement users. Users of financial statements must be educated as to the differences in accounting standards, and the implications that different approaches yield.
The objective of this course is to provide users with a framework to better understand the implications IFRS has on financial statements and its potential impact on financial reporting in the United States as the SEC moves closer to IFRS adoption.
Who should take this course:
Anyone who works with financial statements.
Prerequisites:
Familiarity with financial statements is assumed.
Level:
Intermediate
Training Hours/ CPE Credits:
2
Modules
Module 1
Module Description:
U.S. GAAP and IFRS: An Introduction
Define the acronyms “U.S. GAAP” and “IFRS”
“Harmonization” and “convergence” as they relate to accounting standards
Financial statements required under U.S. GAAP and IFRS
Potential objectives of financial reporting
Two-fold role of accounting standards
Reasons why accounting standards differ among countries
Countries currently using IFRS
Why the adoption of IFRS internationally may not lead to full harmonization of accounting standards
Learning Objectives:
Students will be able to:
Understand the general context of accounting standards and the two most widely used sets of standards in the world (U.S. GAAP and IFRS)
Understand the differences arising from using two different sets of standards
Classify differences in reported outcomes between U.S. GAAP and IFRS
Discuss sources of significant differences between U.S. GAAP and IFRS
Module 2
Module Description:
U.S. GAAP and IFRS: Categorizing Differences
Two dichotomous categories that can be used to organize differences between U.S. GAAP and IFRS
“Substantive” and “cosmetic” differences
“Temporary” and “permanent” differences
The underlying factors that may give rise to differences between U.S. GAAP and IFRS
Measurement, recognition threshold, classification, and rules as they apply to giving rise to differences between U.S. GAAP and IFRS
Benefits of using the classification methods described
Learning Objectives:
Students will be able to:
Understand the general context of accounting standards and the two most widely used sets of standards in the world (U.S. GAAP and IFRS)
Understand the differences arising from using two different sets of standards
Classify differences in reported outcomes between U.S. GAAP and IFRS
Discuss sources of significant differences between U.S. GAAP and IFRS
Module 3
Module Description:
U.S. GAAP and IFRS: Some Differences
Differences between U.S. GAAP and IFRS for, Consolidation, Impairment, Inventory and Financial Instruments
Differences in the interpretation of the concept of “control” and their effect
Compare and contrast the issues affecting the accounting for impairment of financial assets under U.S. GAAP and IFRS
Compare and contrast “impairment testing” requirements and the related accounting for nonfinancial assets under U.S. GAAP and IFRS
Three ways in which accounting for inventory differs between U.S. GAAP and IFRS
How the four underlying factors, (measurement, recognition threshold, classification, and rules) can be used to identify accounting and reporting differences related to financial instruments under U.S. GAAP and IFRS
Learning Objectives:
Students will be able to:
Understand the general context of accounting standards and the two most widely used sets of standards in the world (U.S. GAAP and IFRS)
Understand the differences arising from using two different sets of standards
Classify differences in reported outcomes between U.S. GAAP and IFRS
Discuss sources of significant differences between U.S. GAAP and IFRS
