1. LMSB 1 International Financial Reporting Standards March 25, 2009 Detroit, Michigan

2. LMSB 2 Overview  PFTG Lead on IFRS in LMSB  External Input  Current Challenges  Long Range Challenges  Internal & External Communication  Training  Monitoring, Updating, Revising

3. LMSB 3 PFTG Lead In LMSB  Director, PFTG has Overall Lead in LMSB  Initial Coordination with LMSB and Chief Counsel  Information Gathering and Analysis  Lead Work Group  Coordinate Legal Guidance Needs  Educate Workforce  Identify Potential Resource Needs

4. LMSB 4 External Input  Conference Calls with Accounting Firms  Liaison with AICPA and Dow 30  Initial Roundtable  Brainstormed Critical Issues  Prioritized  E&P, Transfer Pricing, Revenue Recognition, Inventory, Change of Accounting Method  Developed Next Steps

5. LMSB 5 External Input Roundtable Goals  Identify Critical Challenges  Identify Type of Remedy Needed  Identify Impacted Areas  Recommended Training Needs

6. LMSB 6 Current Challenges  EU Countries Converted in 2005  SEC Allows Foreign Issuers to Report on IFRS  Foreign Controlled and Controlled Foreign Corps with current Issues in the Field  Information Gathering on Open Cases  Training  Guidance for Identified Issues

7. LMSB 7 Accounting Method Changes IRC 446 (e) Except as otherwise provided, a taxpayer who changes the method on which he regularly computes his income in keeping his books shall, before computing his taxable income under the new method, secure the consent of the Secretary

8. LMSB 8 Accounting Method Changes Expected Result of any GAAP to IFRS Change  New or modified M-3 adjustment  Form 3115 request for consent to change tax method

9. LMSB 9 Accounting Method Changes VOLUNTARY METHOD CHANGES Rev. Proc. 97-27 Rev. Proc. 2008-52 ADVANCE AUTOMATIC CONSENT

10. LMSB 10 Long Range Challenges  External Input  400 Potential Differences  Prioritize & Coordinate Remedies  All Service Functions Have Stake  Communication  Training  Impact on Existing Guidance

11. LMSB 11 Internal/External Communications Internal  Frequent Updates to Field  Training Opportunities  Available Assistance  Changes to IRM, Rev Proc’s, Forms & Pubs, Audit Techniques

12. LMSB 12 Internal/External Communications External  Update Stakeholder Groups  Liaison to ID Emerging Challenges  Presentations to National Stakeholder Groups  Senior Management Local Presentations

13. LMSB 13 Training  National IVT Overview 8/08  Internal Examiner Training Planned for fiscal year 2009  Domestic CENTRA Summer 09  Ongoing Training as Issues Arise  Industry and Issue Specific Training

14. LMSB 14 Monitoring, Updating, Revising  Current SEC Changes Impact  Pace of Convergence  FIN 48/IAS 12  Policy, IRM and Legal Guidance Updates  Revision of IFRS Planning to Change as Landscape Changes

15. LMSB 15 IFRS Resources  Internal Resources  Technical Advisor Tab on LMSB homepage  http://lmsb.irs.gov/hq/pftg/ifrs/index.asphttp://lmsb.irs.gov/hq/pftg/ifrs/index.asp  Communicate the issues to Ned Connelly’s Group  External Resources  www.ifrs.com  www.fasb.org  www.iasb.org

16. LMSB 16 Presenters Stephen Moore Steve joined the IRS in 2006 as a Revenue Agent in LMSB. Prior to that, Steve was in private industry for over 25 years managing and directing the corporate tax function for a Fortune 100 corporation in Ohio. He accepted a position as an International Examiner in 2007, and a Technical Advisor appointment with PFTG in August of 2008. Steve’s areas of responsibilities include Financial Accounting, Tax Compliance, IFRS, M-3, CAP, TAW Cadre, and CEP. He is also the PFTG designated “Point of Contact” person for the Financial Services Industries and the Field Specialists Group. Steve is a graduate of The Ohio State University

17. LMSB 17 Presenters Philip J. Whitworth Philip Whitworth is a Technical Advisor for Change in Accounting Methods for the Office of Pre-Filing and Technical Guidance (PFTG), within the Large and Mid-size Business Division (LMSB). Whitworth joined the Service in 1982 as a revenue agent and has served in various positions within the examination division, including computer audit specialist and team coordinator. Prior to this position, Whitworth served as a team member of the Utility Industry Specialization Program. Mr. Whitworth is a CPA and member of the American Institute of CPAs. He received his Bachelor’s degree in accounting from West Virginia University.