I FR S “International Financial Reporting Standards (IFRS) are a set of accounting standards developed by in the International Accounting Standards Board becoming the global standard for the preparation for public company financial statements” R

Going for Gold Story of IFRS Battle for the GoldAIS Implications Winning Strategy I FR S R

Goal of IFRS High quality, understandable, enforceable, and global accepted financial reporting standards Principle based I FR S R

Why Should We Switch Teams? Higher quality investments Comparability Raise disclosure standard Consistency I FR S R

Team Player Award I FR S Stakeholders Investors Regulators Auditors Academics National Standard Setters R

A. Interesting Friends Read Stories B. International Financial Reporting Standards C. Imperial Framework Regarding Standards C. Important Financial Reporting School What does IFRS stand for? I FR S R

B. International Financial Reporting Standards I FR S R

How are the IFRS standards based? A. Rule Based B. Fun Based C. Principle based D. Consistency based I FR S How are the IFRS standards based? R

C. Principle based I FR S R

I FR S Battle for the Gold R

Pros Comparability Reduced Information asymmetry Audit Efficiency Relevance Excellent Labor Mobility I FR S R

Cons Relearn Cultural Influence Costly Diminish U.S. power over accounting Extraordinary loss/gain not allowed I FR S R

Differences Between GAAP and IFRS Inventory Consolidation Development Cost Earnings-per-Share Statement of Income I FR S R

A.Comparability B.Relevance C.Admittance into VIP sections world-wide D.Audit efficiency Which of the following is NOT an advantage of IFRS? I FR S R

C. Admittance into VIP sections world-wide I FR S R

True/False True/False: “IFRS allows using LIFO method for inventory measurement” I FR S R

True/False FALSE I FR S R

I FR S AIS Implications R

Areas of Impact within AIS New Data Requirements Changes to the Chart of Accounts Reconfiguration/Modification of Existing Systems Selection and Implementation of New Systems Interface and Mapping Changes Reporting Packs I FR S R

Information System Impacts I FR S R More detailed presentation of information Information calculated on a different basis New Data Requirements Change due to re-classifications and additional reporting criteria Creation of new accounts and deletion of accounts that are no longer required Changes to the Chart of Accounts Changes to existing software to enable accounting under IFRS Larger ERP systems and high-end general ledger packages. New reports and calculations to accommodate IFRS Spreadsheets and Models for: New or Changed calculations New or changed Reports New Models Reconfiguration/Modification of Existing Systems

Information System Impacts R I FR S R Implementation of new software to accommodate IFRS New Software developmental project or solution Selection and Implementation of New Systems Timing and frequency of data transfer requirements Changes to existing mapping tables to accommodate IFRS interfaces Financial statements based on receipt of consolidated information from general ledger Interface and Mapping Changes Additional disclosures information from branches/subsidiaries operating on a standard general ledger package Reporting tools used by subsidiaries and branches may need to modified Reporting Packs

Example of AIS Convergence to IFRS I F R S Purchase of a new Company Building GAAP C apitalize Cost of Building and Depreciate it over the useful life. IFRS Allocate Total Costs to applicable Components (building, roof, fixtures, etc.) and depreciate over the useful life

A.New Data Requirements B.Selection and Implementation of new systems C.Accounts Payable Module D.Reconfiguration/Modifcation of existing systems. I FR S What is not one a major issue areas for implementation in AIS? R

C. Accounts Payable I FR S R

I FR S A winning strategy R

Two Approaches to IFRS Implementation I FR S R

USA Implementation Milestones Improving Specific Accounting Standards Improving the Structure and Funding of the IASB Facilitating the use of interactive data (XBRL) under IFRS Updating the Education and Licensing of U.S. Accountants Evaluating the early adoption experiences of a limited group of companies Timing of future rulemaking Sequencing of companies required to use IFRS USA plans to completely converge in 5-7 years I FR S R

I FR S R

I FR S In many years does the United States hope to be fully converged to IFRS? A.) 1-3 years B.) 7-10 years C.) Never D.) 5-7 Years R

I FR S R

I FR S What are your concerns regarding implementation and change to IFRS from GAAP? R

Conclusion Principle based Uniform, global accounting standards Higher quality of investments Approximately 120 nations have adopted Benefits outweigh costs Who are the gold medalists of the 2012 Accounting Olympics? I FR S R

Sources finance/2011/11/28/what-switch-from-gaap-to-ifrs- may-mean-for-investors/#ixzz1v59BUY7P und+the+world.htm ml milestones/ I FR S R