Spring 2010 issue of Horizons

TITLEGEN RAL TOPICS

IFRS — Looking Ahead

By Eric Janson, CPA, and Mike Ramirez, CPA

Change is the law of life. And those who look only to the past or present are certain to miss the future — John F. Kennedy When looking to the future of accounting, there is one change on the horizon that stands out from the rest: the change from U.S.-based GAAP to International Financial Reporting Standards. According to www.ifrs.com, “IFRS are a set of accounting standards, developed by the International Accounting Standards Board (IASB), that are becoming the global standard for the preparation of public company financial statements.” IFRS is required or permitted in 113 countries around the globe, reports the SEC. The SEC also laid out the roadmap outlining when IFRS could be required for U.S. public companies. The proposed transition from U.S.-based GAAP to IFRS will change the way organizations are run by affecting the organization’s people, processes and technology. To thrive during this future change, companies must prepare and plan now for IFRS. In its roadmap, the SEC detailed milestones that need to be in place before making a decision to adopt IFRS, which was expected to be decided in 2011. The SEC currently is reevaluating that roadmap and is expected to publish an updated version of the proposed plan sometime in 2010.

9 u spring 2010 issue