Download presentation
1
By: Evan, Kelsey, Adrian, Vivi, & Jordan
The Big Bang By: Evan, Kelsey, Adrian, Vivi, & Jordan ADRIAN
2
The Big Bang Approach The problem at hand:
The “Big Bang” approach vs. “Staggered Transition” Our Decision: The Big Bang approach is best method Companies start accounting in accordance with IFRS beginning January 1, 2015 ADRIAN
3
IFRS: Big and Small Business
Complete understanding by date of adoption Principles = 2,500 pages (IFRS) vs. 25,000 pages (USGAAP) Comparative statements: current and prior year only Potential need for additional employees to convert 2014 financials during 2015 International understanding Adoption regardless of company need “...a single set of high-quality global standards.” – Arleen Thomas, AICPA ADRIAN
4
Big Bang: Big Business Pros: Consistent statements throughout quarters
Less hassle for businesses already engaging in international affairs Less interaction with the SEC, the better Cons: For some companies, having to switch all at once might take away from their current tasks No way to ensure that big businesses are going to be ready to convert under the big bang KELSEY
5
Staggered Transition: Big Business
Pros: Series of checkpoints to ensure progress Less pressure and more confidence in transition to IFRS Large companies can spend more time to become proficient in IFRS Cons: Inconsistent statements throughout quarters Increases SEC interaction More costly for the SEC to continually monitor conversion KELSEY
6
Big Bang: Small Business
Pros: Transition to IFRS for small and medium enterprises (SME’s) Modified version of IFRS – less encompassing Less costly Less interaction with the SEC during transition phase Cons: Pressure and expectations with SEC Unnecessary switch EVAN
7
Staggered Transition: Small Business
Pros: Guidance throughout the process Less confusion Cons: Transition period will yield inconsistency for business owners Difficult for SME’s to meet demanding checkpoints “Babysitting Effect” Unnecessary switch EVAN
8
PwC: Big Bang and Staggered
Overall effects on PwC should not vary much between approaches Training is in accordance with PwC’s schedule Staggered transition, PwC will need to teach employees in concert with the SEC checkpoints Opportunity to increase revenue through training companies Ernst & Young significantly aided Coca-Cola in implementing IFRS Cost to teach additional employees vs. future revenue increase VIVI
9
Prepare for Big Bang (IFRS)
Big Bang Time Line Implement IFRS standards beginning January 1, 2015 Issue 10-Q statements for 2015, supplemented with quarterly figures from 2014, all of which are in accordance with IFRS present 01/01/2016 01/01/2014 Prepare for Big Bang (IFRS) 01/01/2015 Q1-15 Q2-15 Q3-15 10Q filings, also including 2004 quarterly figures, in accordance with IFRS ADRIAN
10
Other Factors Supporting Time Line
Investor knowledge of IFRS Substantial time needed for investors to become fluent in IFRS Investors need to fully understand IFRS before it is implemented Initial Public Offerings SEC currently requires five years of audited historical financial Adjusted IPO deadline Time needed to adjust legal contracts JORDAN
11
Questions?
12
By: Evan, Kelsey, Adrian, Vivi, & Jordan
The Big Bang By: Evan, Kelsey, Adrian, Vivi, & Jordan OUTSIDE SHELL OF PAMPHLET
13
Prepare for Big Bang (IFRS)
Big Bang Approach More consistency among financial statements until date of adoption (01/01/2015) Less interacting with the SEC No way to ensure that companies will be ready for the transition on the Big Bang date Effects on PwC Less variability of effects from two approaches Opportunity for increased revenue Staggered Transition Series of checkpoints to ensure participation Increased interaction with the SEC Inconsistent financial statements during transition period Additional Support for Time Line Investor knowledge of IFRS Initial Public Offerings Legal documents present 01/01/2016 01/01/2014 Prepare for Big Bang (IFRS) 01/01/2015 Q1-15 Q2-15 Q3-15 10Q filings, also including 2004 quarterly figures, in accordance with IFRS INSIDE OF PAMHLET
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.