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July 2008

Education needed for move to IFRS

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
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37 Education needed for move to IFRS



All eyes are on the Securities and Exchange Commission as it
prepares to issue a detailed roadmap this summer for the transition to
International Financial Reporting Standards, but some representatives gave hints
about what might be in that roadmap at a conference held by the Financial
Accounting Standards Board in New York.


FASB Chairman Bob Herz likened the move to IFRS, while
accountants continue to use U.S. generally accepted accounting principles, to
“trying to ride two horses at once.” He said FASB was in the process of updating
its memorandum of understanding with the International Accounting Standards
Board on convergence, but said it was up to the SEC to give a date for the
transition.

AICPA CEO Barry Melancon said a modification of the Tax Code
by Congress would be the best way to handle differences such as the
last-in/first-out inventory method, which is not supported in IFRS. “The LIFO
issue is primarily a tax issue,” he said. He sees growing awareness among
corporate CPAs of the move to IFRS. He believes the time is now to set a date
certain for the transition. “You converge, converge, converge, but at some
point, you have to adopt,” he said.

(Source : Internet wires)

 

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