New Revenue-Recognition Rules: The Apple of Apple's Eye?

September 16 (cfo.com) - The computer company and other tech outfits are likely to cash in on revenue-recognition changes if the new regs take on an international flavor.

What did people say about the proposed revenue recognition model?

August 20 (fasri.net) - The comment letter deadline for the IASB/FASB discussion paper on revenue recognition was June 19, 2009. The FASB/IASB staff recently presented a high-level summary of the 200+ comment letters received by the boards. This post considers the more general themes across all comment letters.

CFO Briefing: Transition to XBRL

August 6 (cica.ca) - By the end of 2011, all SEC filers, including some 451 Canadian companies listed on U.S. exchanges, will have implemented XBRL. The purpose of this briefing is to offer clarity on XBRL by introducing basic concepts, exploring the benefits and downfalls of implementation, indicating the status of XBRL reporting in Canada, and offering tips for preparation.

The SaaS Business Model and Some Common Legal Questions

August 6 (interwest.com) - SaaS agreements are typically subscription services agreements that address key customer concerns with service levels, security, privacy, and ultimately performance. More detailed SaaS-specific issues include: how mid-term add-on user subscriptions are handled; the details of the renewal process; whether support is bundled in or extra; what usage rules apply to your users; and how third party services are made available through your service. There are many ways to address these issues depending on your particular business, but one thing is clear – SaaS providers need to ensure their hosting and other services vendors are providing “back-to-back” terms for the terms being offered to customers.

IFRS: What’s Next?

August 6 (ifrsusa.wordpress.com) - IFRS is coming. The issue is when will it be required, not if it will be required. How shall we prepare for IFRS’ eventual arrival while we wait for the SEC to make its move? Consider these ideas as you begin to prepare.

Tweedie Warns of 2011 Deadline for IFRS Choice

August 6 (webcpa.com) - International Accounting Standards Board chairman Sir David Tweedie said that other countries are running out of patience waiting for the Securities and Exchange Commission to decide on whether to approve a roadmap for transitioning to International Financial Reporting Standards and that the U.S. would need to commit by 2011.

FASB and XBRL US Align XBRL US GAAP Tags to New Accounting Codification

August 6 (prnewswire.com) - The Financial Accounting Standards Board (FASB) and XBRL US, the nonprofit consortium for XML business reporting standards, announced today that they have completed the work to revise the XBRL US GAAP Taxonomy to reflect the FASB Accounting Standards Codification(TM) that was released on July 1, 2009. The Codification is the single source of authoritative nongovernmental US generally accepted accounting principles (GAAP) and is effective for interim and annual periods ending after September 15, 2009.

Action needed on IFRS

July 29, 2009 (gaapweb.com) - Robert Bunting, president of the International Federation of Accountants (IFAC), explained that International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) are now seen as vital to the public interest.

Revenue Recognition: Will a Single Model Fly?

July 29, 2009 (cfo.com) - Can U.S. and international accounting standard-setters realize their dream of fashioning a single revenue-recognition standard that would apply to all customer contracts? While the answer won't be known for some time, it's safe to say there are hurdles on the road ahead.

Congressional Bill Supports Federal Takeover of Financial Reporting

July 29, 2009 (fincriadvisor.com) - Should FASB's decisions be subject to government oversight? A bipartisan effort is underway in Congress to make that a reality, a position supported by former FDIC chair Bill Isaac, former Speaker of the House Newt Gingrich and Paul Volcker, the chairman of President Obama's Economic Advisory Board.

Microsoft Discloses Windows 7 Price, Upgrade; Defers Rev

July 14, 2009 (marshallweinberg.com) - Microsoft Corp. (MSFT) said it would slash prices on the main consumer version of Windows 7, the new version of its operating system, and will defer up to $300 million of revenue this quarter due to a program designed to help consumers upgrade.

Private Companies Get IFRS Made Easy

July 13, 2009 (cfo.com) - Private U.S. companies have a new option in accounting standards following Wednesday's release of a simplified, vastly slimmed-down version of International Financial Reporting Standards. Private firms in the United States could already choose IFRS. Yet relatively few have done so, even though the full version of IFRS, at about 2,500 pages, is roughly a tenth the size of U.S. generally accepted accounting principles. It remains to be seen how many companies will find it harder to resist the new "IFRS for SMEs," which weighs in at just 230 pages.

SaaS Revenue from the Vendor's Point of View

July 6, 2009 (seekingalpha.com) - SaaS vendors are only able to recognize their subscription revenues on a month-to-month basis, decimating their traditional software revenue recognition models. This harsh reality is what has kept the CXOs of the legacy, on-premise ISVs up at night hoping that the SaaS and cloud computing movement would disappear or be derailed by a major outage that would send customers fleeing back to the comfort of their on-premises software and systems safely hidden behind the firewall. Of course, the opposite has been true and SaaS/cloud computing market growth is accelerating as a result.

IFRS for Small and Medium-sized Entities

July 1, 2009 (blog.ifrs.com) - Based on full IFRS, the new standard will be a simplified, self-contained set of accounting principles designed for use by private entities. With the AICPA’s recognition of the IASB as an accounting standards setter in 2008, the door is open for U.S. private companies to adopt IFRS, and with the release of the new standard, IFRS for SMEs.

PCFRC Works on Revenue Recognition

June 30, 2009 (webcpa.com) - The Private Company Financial Reporting Committee met to discuss topics ranging from revenue recognition to FIN 48-d and loan-loss contingencies. The committee spent a great deal of time during the meeting discussing FASB’s revenue recognition project and its consultations with other groups. Committee members had talked with the Construction Financial Management Association to make sure they understood what the association’s issues were before sending out a comment letter. O’Dell noted that the PCFRC does extensive outreach to other organizations such as the CFMA and Financial Executives International to act as a funneling point for leaders of private companies from different constituencies.

Can you see the join?

June 30, 2009 (pwc.com) - Few subjects stimulate as much debate in accounting as fair value measurement. It has been blamed for many things over the past few years, including contributing to the credit crisis. The IASB and the FASB have committed to a joint response, and they have both issued discussion documents over the past few months. However, despite the focus on convergence and the Standard Setters working together to achieve one set of Global Standards, it’s clear these documents are not wholly consistent with each other.

PCAOB Delays Foreign Firm Inspections

June 26, 2009 (cfo.com) - The Public Company Accounting Oversight Board has voted to delay inspections of foreign accounting firms for up to three years after hearing an outcry over the legality of the inspections from regulators and firms overseas.

Are Canadian companies ready for IFRS?

June 25, 2009 (cfo.com) - With the January 1, 2011 deadline for Canadian companies' transition to International Financial Reporting Standards (IFRS) looming on the horizon a new survey by the Canadian Financial Executives Research Foundation (CFERF), the research institute of FEI Canada, and sponsored by PricewaterhouseCoopers (PwC) indicates that many companies will have a race to the finish line.

PCAOB Rips E&Y on Revenue Recognition

June 17, 2009 (cfo.com) - Ernst & Young failed to note when two clients strayed from revenue-recognition rules, according to the latest inspection report on the Big Four firm by the Public Company Accounting Oversight Board. Consequently, the regulator's sixth annual inspection of E&Y resulted in those clients having to restate their previously issued financial statements to make up for the departure from U.S. generally accepted accounting principles.

Survey shows SMEs want simplified international accounting standards

June 17, 2009 (smartcompany.com) - An overwhelming number of small businesses support the introduction of special international financial reporting standards for SMEs that could help cut complexity and cost involved in preparing financial reports. The survey of SME company directors, auditors, accounting firms and professional bodies by accounting firm Grant Thornton found 83% of respondents support the adoption of IFRS for small companies.

Will the New FASB Code Change Accounting?

June 17, 2009 (cfo.com) - Get ready to say good-bye to the alphabet soup that currently comprises Generally Accepted Accounting Principles. As of July 1, standards now known as FAS, FSP, EITF, or APB, among others, will be subsumed into a new and less letter-centric organizational system as part of the Financial Accounting Standards Board's codification project.

IASB Could Lose European Standard Setting Role

June 15, 2009 (profalbrecht.wordpress.com) - The EU wants the IASB to be independent of everyone but Europe. The EU wants the IASB to be subservient to Europe’s wishes. European politicians just have to be getting tired of lobbying in the financial press for certain provisions in IFRS. It would be much easier if Europe had a standard setting body that answered directly to Charlie McGreevy, Finance Minister. The result would be more acceptable standards and less debate in the public spotlight.

Japan takes major step towards IFRS adoption

June 15, 2009 (iasb.org) - the Business Accounting Council (BAC), a key advisory body to the Commissioner of the Financial Services Agency (FSA), approved a roadmap for the adoption of International Financial Reporting Standards (IFRSs) in Japan.

Mark Olson resigns as PCAOB chairman

June 11, 2009 (accountingweb.com) - Mark W. Olson, chairman of the Public Company Accounting Oversight Board (PCAOB) has resigned effective July 31, one year before his second term was due to end. Olson was appointed to his position in 2006 by Securities and Exchange Commission (SEC) Chairman Christopher Cox. Olson's replacement will be named by Mary Schapiro, current head of the SEC.

Seven key differences in IFRS

June 10, 2009 (camagazine.com) - Canada’s publicly accountable enterprises (PAEs)have to give up Canadian generally accepted accounting principles (GAAP) and switch to international financial reporting standards (IFRS) for annual periods starting on or after January 1, 2011.1 Despite the fact that few PAEs have started moving on this — as some surveys have shown — such enterprises should have completed their transition planning and assessed the anticipated effect of the change on their financial reporting by the end of this year. In fact, the Canadian Securities Administrators want to see those plans discussed in management’s discussion and analysis covering fiscal year 2008.

Study Predicts Little Benefit to Adopting IFRS in U.S.

June 9, 2009 (webcpa.com) - A new academic study takes issue with claims that U.S. companies would benefit from adopting International Financial Reporting Standards. The study finds that the high-quality accounting infrastructure already in place for U.S. GAAP would likely see little upside from a transition to IFRS, as envisioned by the SEC’s proposed roadmap, which the new SEC commissioner has not yet approved.

SEC’s Aguilar on 404, IFRS Proxy Access, More

June 4, 2009 (accountancyage.com) - Smaller companies should prepare to become “more familiar” with the auditor attestation requirement under Section 404(b) of the Sarbanes-Oxley Act, an SEC commissioner told a group of compliance officers gathered in Washington D.C.

FRC chief warns of EU 'breakaway'

June 4, 2009 (accountancyage.com) - The UK’s top accountancy regulator has said that there are moves underway in the European Union looking to establish a breakaway version of international accounting standards, a move that could undermine efforts to converge IFRS with US GAAP. Paul Boyle, chief executive of the Financial Reporting Council, who is stepping down in November, warned that such a move would also have serious repercussions in the US, as foreign issuers would have to iron out the differences between IFRS-compliant accounts and US GAAP.

SEC Chief Strives To Rebuild Regulator

June 4, 2009 (washingtonpost.com) - Schapiro's efforts to reform the agency are still getting off the ground and have yet to gain the prominence of actions taken by the Treasury Department and Federal Reserve to stabilize the financial system. But by taking so many actions so quickly, Schapiro is trying to send the message that the SEC is an aggressive and relevant regulator.

FASB Accounting Standards Codification

June 1, 2009 (aicpa.org) - On July 1, 2009, FASB is expected to issue FASB Accounting Standards Codification™ (ASC) as authoritative. At this time, it will become the source of authoritative U.S. accounting and reporting standards for nongovernmental entities, in addition to guidance issued by the Securities and Exchange Commission (SEC).

Supreme Court to Hear Major Case Challenging Sarbanes-Oxley Accounting Board

June 1, 2009 (cei.org) - The Supreme Court today announced it would hear a case brought by the Competitive Enterprise Institute and the Free Enterprise Fund challenging the constitutionality of the Public Company Accounting Oversight Board (PCAOB).

Implementing IFRS effectively

May 20, 2009 (thestar.com) - IFRS convergence affects more than just the accounting policies, processes and people of a company; therefore, it is also important to identify the broader implications of the IFRS requirements. What would be the tax consequences of IFRS differences? What are the system implications for new reporting requirements? Other similar questions need to be asked to avoid under-estimating the scale of effort necessary for convergence.

CPAs Becoming More Familiar With IFRS, Many Want More Time

May 20, 2009 (journalofaccountancy.com) - CPAs hold mixed views on the SEC’s proposed timeline for the adoption of IFRS by U.S. public companies, according to an AICPA survey. Asked whether they think the timeline, which would require IFRS adoption for public companies starting in 2014, should be changed, 47% of CPA respondents said it should be delayed. Twenty-two percent said the proposed timeline is a good one. Six percent said it should be accelerated. The remaining respondents were unsure.

Supreme Court to Rule on PCAOB's Fate

May 20, 2009 (cfo.com) - The U.S. Supreme Court has agreed to review a case that questions the constitionality of the creation of the Public Company Accounting Oversight Board under the Sarbanes-Oxley Act. The justices will consider whether the existence of the PCAOB violates the Constitution's separation-of-powers principle.

FASB head urges decision on international accounting

May 5, 2009 (reuters.com) - The United States should consider adopting international accounting standards in the next three to five years even if they are not completely converged, the top U.S. accounting rulemaker said on Thursday.

CFOs divided over need for IFRS

May 5, 2009 (accountingweb.com) - In a national survey of CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, half believe that U.S. companies should be permitted to use IFRS, instead of U.S. GAAP, in financial statements filed with the SEC, while half disagree.

Herz: No Convergence for 10-15 Years

April 22, 2009 (xbrl.us) - With 30 people around the table, and more participating by phone, it was sometimes difficult to follow the proceedings of the Financial Crisis Advisory Group (FCAG) in London today. The body, assembled by the International Accounting Standards Board and the Financial Accounting Standards Board last year to provide high-level advice on financial reporting issues stemming from the credit crunch, also found itself wrestling with a host of complicated problems.

XBRL US Publishes 2009 Release of US GAAP Taxonomies for SEC XBRL Mandate

April 22, 2009 (xbrl.us) - XBRL US announced today that it released and posted the digital dictionary for US GAAP reporting which has been accepted by the Securities and Exchange Commission (SEC). The 2009 release includes hundreds of accounting and industry-specific revisions to the 2008 release.

It is a myth IFRS requires all assets and liabilities to be measured at fair value

April 20, 2009 (business-standard.com) - The use of fair value measurement in International Financial Reporting Standards (IFRS) is much higher than compared to that in Indian GAAP. However, it is a myth IFRS requires all assets and liabilities to be measured at fair value. For example, IFRS provides an option to an entity to use either the cost model or the revaluation model to measure fixed assets (property, plant and equipment (PPE) and intangible assets) subsequent to initial recognition.

IASB Makes Its Core Standards Freely Available; SEC Comment Deadline on IFRS Roadmap Looms

April 20, 2009 (financialexecutives.blogspot.com) - The standards that have been made freely available on IASB website are 'unaccompanied' standards, i.e. the "core" standards, excluding additional content such as the Basis for Conclusions. To obtain the complete material (e..g including Basis for Conclusions) purchase is required through an eIFRS subscription or through the IASB's online shop (see links below).

CFOs on IFRS: Forget about It

April 20, 2009 (cfo.com) - Many of the nearly 40 finance executives who have commented on the SEC's proposal worry about the cost of switching accounting systems and doubt many companies will consider the change worth the trouble. "Conversion to IFRS could lead to confusion and reduced marketplace confidence in financial statements at a time when confidence in the U.S. financial markets is already low," wrote Patrick Mulva, controller for ExxonMobil.

IFRS Basics

April 17, 2009 (businessweek.com) - IFRS standards are broader and more principles-based than U.S. GAAP. This represents a hurdle for many U.S. CPAs because we have been used to narrow “bright line” rules and guidelines on how to apply GAAP. IFRS tends to leave implementation of the principles up to preparers of financial statements and auditors.

Earnings: Watch for These Red Flags

April 10, 2009 (businessweek.com) - Historically, the most common cause by far for companies having to restate their financials or submit to other SEC enforcement actions has been the way in which they have recognized revenue. That's because the higher up in the income statement the numbers are massaged, the larger the effect on a company's bottom line, says Kiima. And within revenue recognition, the most prevalent form is premature recognition, or booking sales before prices have been fixed, contracts have been finalized, or goods or services have been delivered to customers.

CFOs See Significant Opportunity in Conversion from GAAP to IFRS

April 9, 2009 (cbh.com) - Although the possible future conversion from Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) is expected to be an expensive and complex undertaking for U.S.-listed companies, a recent study found that many U.S. executives also see a significant opportunity to transform a number of major business functions.

SEC Chairman Mum on Accounting Issues

April 8, 2009 (cfo.com) - With just two weeks left for the public to comment on the Securities and Exchange Commission's proposed roadmap for adopting International Financial Reporting Standards, SEC chairman Mary Schapiro's own views on the topic, as well as some other prominent accounting issues, remain largely a matter of guesswork and speculation.

Majority of Deloitte IFRS Survey Respondents Would Prefer a Set Date for Global Accounting Standards

April 7, 2009 (deliotte.com) - The Securities and Exchange Commission should soon establish a specific date that International Financial Reporting Standards would be required for U.S. public companies. That was the view expressed by 62 percent of finance professionals responding to a new Deloitte survey. The survey also found that a significant majority (75 percent) of respondents support the movement toward a single set of high-quality global accounting standards. However, 64 percent of those responding indicated that they have not allocated any budget to IFRS transition.

International Accounting Standards Board: figuring it out

April 7, 2009 (timesonline.co.uk) - While President Obama was breakfasting with Gordon Brown last week, one of his key appointees was also having a significant exchange of views over early morning coffee. Mary Schapiro, newly installed as chairman of the most-feared regulatory body in the world, the Securities and Exchange Commission (SEC), was having breakfast with the International Accounting Standards Board (IASB). This was important.

Mind the GAAP: Analyzing the Proposed Switch to International Accounting Standards

April 2, 2009 (wharton.upenn.edu) - Based on their research, Hail and his coauthors conclude that the relationship between accounting standards and the quality of corporate reporting appears to be more limited than previously thought. In fact, they say, it is not even clear that the liquidity and valuation effects documented by prior studies around IFRS adoption can be attributed solely or even primarily to the adoption of new accounting standards.

U.S. Companies See Opportunity to Transform Finance with IFRS

April 1, 2009 (accenture.com) – Chief financial officers and other executives of U.S.-listed companies believe the conversion from U.S. Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) will present an opportunity to transform their finance functions and create more value for their companies by mitigating financial reporting risk, increasing financial transparency and creating operational efficiencies, according to an Accenture (NYSE: ACN) study released today.

Guessing the Costs of IFRS Conversion

April 1, 2009 (cfo.com) - U.S. executives expect to pay more than their European counterparts did to convert to International Financial Reporting Standards. Depending on company size, they estimate they'll spend between 0.1% and 0.7% of annual revenue to move from U.S. GAAP to the global rules, an endeavor publicly traded companies in Europe undertook four years ago at an average cost of 0.05% of revenue.

Converting IFRS Into I.T.

March 27, 2009 (canadianunderwriter.ca) - Adopting International Financial Reporting Standards (IFRS) -- as Canada's "publicly accountable enterprises" (a definition that includes insurers) are required to do by 2011 -- is much more than a financial or accounting exercise, as its name and acronym might suggest. Indeed, successful adoption of IFRS depends on a much deeper, holistic, organizational-wide commitment.

Auditors backtrack on SaaS revenue recognition

March 26, 2009 (blogs.zdnet.com) - Just when SaaS vendors were starting to get their investors and customers comfortable with the recurring revenue model, now their accountants are getting cold feet. Taleo restated financials all the way back to 2003, changing the recognition of professional services revenue to spread it across the length of the contract (typically three years in Taleo’s case). There is no change to the value of revenue being recognised, merely the timescale over which it is written to the bottom line.

Will Taleo’s Changes in Revenue Recognition Change SaaS?

March 26, 2009 (humancapitalist.com) - This news further complicates the SaaS model, how SaaS vendors recognize revenue, and most importantly, how auditors can essentially change the outcome of the game after it has been played.

International Financial Reporting Standards (IFRS) reporting

March 22, 2009 (pwc.com) - Financial reporting in the United States is being influenced by International Financial Reporting Standards (IFRS). IFRS reporting considerations are already impacting business decisions, and not simply through non-US subsidiaries. The SEC is considering measures that could lead to retiring US GAAP and adopting IFRS in the US. However, the effects of global reporting on US companies will accelerate over the next few years, regardless of how the SEC proceeds. Understanding IFRS and its business implications is a competitive imperative for US companies.

IASC Foundation XBRL Update

March 22, 2009 (The XBRL Canada Blog) - A few days ago the IASC Foundation released its quarterly (from now on) XBRL Update, a newsletter that covers XBRL activities related to IFRS. In the section reserved to Canada the newsletter features the Convergence Assistant (CA), a joint effort between the Canadian XBRL Jurisdiction, the XBRL Global Ledger Working Group and Iphix to provide a tool to facilitate the transition from Canadian GAAP to IFRS for Canadian businesses.

The IT aspects of IFRS conversion

March 20, 2009 (kpmg.com) - As countries around the world line up to convert to International Financial Reporting Standards (IFRS) over the coming years, many businesses will already be planning how to manage their own conversion processes. While such conversion projects are understandably driven by the accounting requirements, there are considerable technology concerns behind each project; concerns which may not be receiving the full consideration which they deserve.

Rewriting Revenue Recognition

March 20, 2009 (ifrs.com) - On December 19, 2008, the Financial Accounting Standards Board and the International Accounting Standards Board issued a Discussion Paper titled, Preliminary Views on Revenue Recognition in Contracts with Customers. The joint project was initiated to clarify principles for recognizing revenue. This project is a major step toward convergence of U.S. GAAP and IFRS and is expected to lead to a single standard for revenue recognition.

Grubb & Ellis Company Files 8-K Announcing Restatement of Financial Statements

March 18 (grubb-ellis.com) Grubb & Ellis Company(NYSE: GBE), a leading real estate services and investment firm, today announced that it had filed a Current Report on Form 8-K disclosing that certain previously issued financial statements will be restated to correct accounting errors related to the timing of revenue recognition relating to certain tenant-in-common investment programs sponsored by NNN Realty Advisors prior to the company's merger with NNN Realty Advisors in December 2007

Cash is cash, isn’t it?

March 18, 2009 (pwc.blogs.com) - One of the higher profile proposals in the IASB and FASB discussion paper on financial statement presentation concerns the cash flow statement. IFRS reporters may currently present a cash flow statement on either a direct or an indirect basis, but the Boards are proposing only to permit the former in the future. That is, all cash flow statements should be presented on a direct basis.

G20 must promote IFRS, argue UK accounting bodies

March 18, 2009 (accountingweb.co.uk) - Two of the UK's leading accounting bodies, the ACCA and the ICAEW, are calling for leaders to champion the global adoption of IFRS at this April's G20 summit. The ACCA has released a discussion paper arguing that G20 leaders should endorse the benefits of IFRS because they will bring ‘transparency, comparability and clarity to reporting in the interests of shareholders, business and the wider public’.

The State of Restatements: Sharply Falling

March 11, 2009 (cfo.com) - For the second straight year — after six years of Sarbanes-Oxley-related increases — the number of corporate financial restatements fell in 2008. Last year, public companies filed 869 restatements, down 29.6 percent from the 1,235 restatements filed in 2007, according to a new study from Audit Analytics. This nearly matched the 31.4-percent decline in the prior year. The number of unique filers fell about 12 percent, to 778 in 2008.

Study: Early Adoption of IFRS By Companies Unlikely In Current Conditions

March 9, 2009 (fei.com) -- While many financial executives have begun the initial stages of convergence with International Financial Reporting Standards (IFRS), early adoption in 2009 for qualifying companies will be difficult, if not impossible, due to the significant time requirements, according to a new report released today by Financial Executives Research Foundation (FERF) and Resources Global Professionals. The report also finds that a crucial milestone for companies will be the SEC's anticipated 2011 decision on whether or not mandatory adoption of IFRS is in the public interest.

Putting IFRS in Motion

March 9, 2009 (ifrsnewsandviews.com) - Jason Boggs, a partner in PwCs Capital Market Group, has extensive experience in implementing IFRS in other countries. This experience has given Jason some interesting insights on the biggest mistakes observed in IFRS conversions.

More on the Free Flow of Capital and IFRS

March 9, 2009 (profalbrecht.wordpress.com) - Having gone through this line of thought, my conclusion is that if you believe that the capital of a country’s citizens can be viewed as a national resource, then you should support the U.S. retention of its GAAP. If you believe in the free flow of capital, then you should support IFRS for the U.S.

Congress Proposes New Accounting Overseer

March 9, 2009 (webcpa.com) - The board would include the Treasury Secretary and the chairmen of the Federal Reserve, the Securities and Exchange Commission, the Federal Deposit Insurance Corp., and the Public Company Accounting Oversight Board. Currently only the SEC plays a role in how GAAP applies to financial markets, the congressmen pointed out. The board would approve the standards set by the independent Financial Accounting Standards Board.

New York CPAs Slam IFRS Roadmap

March 9, 2009 (cfo.com) - A prominent accountants group filed a comment letter with the Securities and Exchange Commission Thursday displaying deep skepticism about the workability of the current roadmap for requiring U.S. public companies to use international financial reporting standards.

ACCA Issues Policy Paper Calling for Transparency in U.S. Financial System

March 3, 2009 (acca) - ACCA (the Association of Chartered Certified Accountants) today issued a new policy paper titled, "The Future of Financial Regulation in the U.S.," citing the need for U.S. financial institutions to take steps to gain further transparency and innovation in an effort to restore global stability. In the paper, ACCA recommends that U.S. universities and colleges need to stress the importance of teaching IFRS (International Financial Reporting Standards) otherwise businesses will suffer.

Support for SEC's Proposed IFRS Conversion Timeline

March 3, 2009 (smartpros.com) - KPMG’s survey found that 57 percent of investors and analysts believed the timeline proposal announced by the SEC in November to be “about right,” while 18 percent said it wasn’t aggressive enough. In addition, 55 percent of corporate executives agreed with the timeline, while 8 percent said it was “too long.”

The post-IFRS world

March 2, 2009 (webcpa.com) - I thought it would be worthwhile exploring what the situation might be post-IFRS-adoption for U.S. GAAP, for the Financial Accounting Standards Board and for the International Accounting Standards Board, drawing on my experience of what has happened in the U.K. and Europe.

IFRS: Better To Be a Leader or Fast Follower?

February 27, 2009 (marketdigest.biz) - International Financial Reporting Standards (IFRS) will become the approved method of financial reporting in the United States. The question is, when? The bigger question at the moment for most companies is when to get started with planning for IFRS.

SECs Leap Toward IFRS: Has the momentum gone?

February 27, 2009 (aicpa) - After a period during which IFRS were a “hot topic” for the US regulator and commentators, it seems that the pace is slowing down. Does it mean that IFRS will not be adopted in the USA? Definitely the rapid pace towards the adoption of IFRS is gone, but it would be a stretch to conclude that the plan itself is buried, even if the timetable may eventually be modified.

The Rosen Law Firm Announces Investigation of Securities Claims Against NutraCea

February 24, 2009 (marketwatch.com) - The Rosen Law Firm, P.A. announces that it is investigating potential securities fraud claims against NutraCea pertaining to allegations that NutraCea issued materially inaccurate financial statements to the investing public between August 14, 2007 and February 23, 2009.

NutraCea to Restate Financial Statements for 2007 and 2008

February 24, 2009 (nutracea) - NutraCea (OTC Bulletin Board: NTRZ) announced that it will restate its financial statements for the fiscal year ended December 31, 2007. Based on its review to date, the Audit Committee has determined that the Company improperly recognized revenue on two transactions in 2007 with entities that are not currently customers of the Company.

Taleo Announces Restatement of Financial Statements

February 23, 2009 (taleo) - Taleo Corporation (NASDAQ: TLEO) today announced that the Company's previously issued financial statements for the years ended December 31, 2006 and 2007, and the interim financial statements for the quarters ended March 31, 2008 and June 30, 2008 will be restated to make corrections to the timing of recognition of approximately $3 million of consulting services revenue previously recognized as delivered under the proportional performance method, and the timing of revenue recognition of approximately $200,000 for set-up fees, an element of the Company's application services revenue.

IFRS: Lessons for the public sector

February 23, 2009 (accountingweb.co.uk) - Taking accounting regulations lightly has already been the bane of many businesses, with huge rafts of companies having to adopt emergency measures. This usually involves paying external consultants high charges to meet rapidly approaching deadlines, with mixed results. Its a lesson that never seems to be learned and now the public sector is falling into the same traps.

NASBA Urges SEC to Withdraw Roadmap

February 20, 2009 (NASBA) - National Association of State Boards of Accountancy has recommended that the SEC withdraw its "Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by US Issuers" and instead support the joint efforts of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to converge standards by 2011

Private Companies Positive on IFRS in a New Deloitte Poll

February 19, 2009 (Deloitte) - Nearly 85 percent of those polled found something appealing about the project, including more than 33 percent that liked the idea of having a simplified, self-contained set of accounting standards that are appropriate for private entities. Close to 30 percent believed these standards would reduce their financial reporting burden, and just over 21 percent cited better comparability for users of private company financial information.

CFOs Weigh In On International Accounting Standards

February 18, 2009 (bdo.com) - Opinions on Revenue Recognition Evolving. Businesses are becoming more receptive to IFRS, but nearly a two to one ratio (57%) still feel GAAP provides better revenue recognition rules for technology companies over IFRS. This is down from sixty-nine percent of companies who felt GAAP provided better quality revenue recognition rules when queried last year.

GSI wins Nasdaq listing extension

February 18, 2009 (boston.bizjournals.com) - GSI Group Inc., a maker of laser systems, has been granted an extension until May 4 to regain listing compliance with the Nasdaq Stock Market. On Feb. 11, GSI Group disclosed that it had widened the scope of its internal accounting audit to include its 2006 fiscal year and said it will need to restate its 2007 financial results. That announcement came just two months after the Bedford, Mass.-based company said it would need to restate results for the first and second quarters of 2008 and review its 2007 sales. In both cases, GSI said it has found errors in the recognition of revenue for its semiconductor systems division.

Applying IFRS to small companies

February 18, 2009 (accountingweb.co.uk) - The International Accounting Standards Board (IASB) has been busy developing a financial reporting framework for companies in the UK that fall under the umbrella of small and medium. This will typically affect approximately 90% of companies within the UK. The IASB published a document in February 2007 International Financial Reporting Standard for Small-Medium Entities which was commonly referred to as IFRSSME. The IASB then took the decision to rename the document International Financial Reporting Standard for Private Entities in view of the target audience.

FSCO requiring semi-annual reports on IFRS readiness

February 9, 2009 (canadianunderwriter.ca) - Ontario's insurance regulator, the Financial Services Commission of Ontario (FSCO), has served notice that it considers the required transition to International Financial Reporting Standards (IFRS) in 2011 to be an "enterprise risk," and so "we are therefore monitoring the company's response to that risk."

Lessons Learned from Europe's IFRS Conversion

February 9, 2009 (cio-today.com) - Identify a good project-management team. Companies that had good teams found that implementation efforts went much smoother. The right project manager will vary from company to company. Some European companies used former Sarbanes-Oxley 404 project managers. Others have used outside specialists or an accounting-policy person.

Regulatory Strategy 2009: What to Watch Right Now

February 5, 2009 (businessfinancemag.com) - Will the SEC be abolished, merged, or left as-is? Will IFRS adoption be delayed? What other regulatory issues will affect GRC workloads? All of these questions will -- or at least, should -- be answered in the coming weeks. To ensure that none of these answers throw your GRC programs and processes for a loop

A Closer Look at the 2008 Life Sciences Securities Lawsuits

February 3, 2009 (dandodiary.com) - The lawsuits filed against life sciences companies in 2008 involved a wide variety of allegations. The most common allegation, asserted in five of the lawsuits, is that the defendant company misrepresented the results or progress of one or more of its clinical trials. Lawsuits filed against four companies alleged financial misstatements or improper revenue recognition.

Lights Out for Ex-CFO in Revenue Scheme

February 2, 2009 (cfo.com) - The SEC alleged that from at least late 2001 through early 2003, Morano and others improperly recognizing a series of sales transactions, fraudulently inflated revenue, and misrepresented other financial metrics. Six consecutive financial reporting periods, starting with those for the year ended December 31, 2001, were later deemed materially false.

Questions for Comment from Roadmap

February 2, 2009 (profalbrecht.wordpress.com) - Just to ease your efforts, Ive scanned through the 184 page SEC Proposed Roadmap to IFRS and have picked out the issues for which the SEC is requesting comment. There are 66. Comments due on or before February 19, 2009. Comments can be sent via e-mailto rule-comments@sec.gov. Include File Number 87-27-08″ on the subject line.

Guidance on Monitoring Internal Control Systems

February 2, 2009 (coso.org) - COSO is pleased to release the first volume of its monitoring guidance the Introduction. This business guidance more fully develops the monitoring component of the Internal Control - Integrated Framework to assist companies in ensuring the effectiveness of their financial, operational, and compliance-related internal controls. The entire four-volume set of guidance will be available on February 4, 2009

Huge Changes in Store for Financial Statements

February 2, 2009 (cfo.com) - Issued as a discussion paper in October by both FASB and the International Accounting Standards Board, the goal of the redesign is to address investor complaints that items on each of the financial statements are not linked across the three statements, and that dissimilar items are often aggregated. Among the notable features: all three statements balance sheet, income statement, and cash-flow statement will be divided into two major sections: business and financing.

Senate endorses Schapiro as SEC chair

January 26, 2009 (accountancyage.com) - The US Senate has given its backing to Mary Schapiro's selection as the new head of the Securities and Exchange Commission. Schapiro has said she will put the IFRS roadmap under the microscope as one of her first key objectives when she takes office.

EU may fund private sector financial oversight

January 26, 2009 (Associated Press) - The European Commission suggested Monday that the European Union should help fund private-sector financial oversight groups to make them independent of the market.

Spotlight on Apples hidden revenue stream

January 26, 2009 (cnn.com) - On Wednesday, when Apple announces its fiscal 2009 first-quarter earnings, the business press will rush to report the key metrics: number of units sold for Macs, iPods and iPhones, as well as overall company sales, earnings, and gross margins. But according to some long-time Apple watchers, what really matters tomorrow is whether reporters and analysts will fail once again to recognize the rapidly growing value of Apples hidden revenue stream.

Will a Tortoise Pace Win the Global Accounting Race?

January 26, 2009 (cfo.com) - Staffers from President Obama's transition team called the Financial Accounting Standards Board before the new president took office to ask for updates on current projects. That's standard operating procedure for an incoming administration, but it is nice to know that accounting issues were on some White House agenda before the new president took office. It also probably means that the administration, via the Securities and Exchange Commission, will be announcing its new list of priorities sooner than later.

FEI Asks SEC To Extend Comment Deadline On IFRS Roadmap

January 26, 2009 (financialexecutives.blogspot.com) - Financial Executives International (FEI) sent a comment letter to the U.S. Securities and Exchange Commission, formally requesting the SEC to consider extending the comment period on its proposed Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards (the IFRS Roadmap). FEIs comment letter asks the SEC to consider formally extending the comment period - currently slated to close on February 19 - by an additional 45 days.

PCAOB to Auditors: Focus on the CFO

January 26, 2009 (cfo.com) - Because smaller companies tend to have simpler business processes and financial reporting systems, fewer business lines, and more centralized accounting functions, they demand different treatment from the auditor, according to today's guidance. And in citing two other differences -- more intense involvement by senior management in day-to-day business activities and fewer management levels, "each with a wide span of control" -- the PCAOB's staff suggests that auditors should focus more on the CFO when checking out a small company's controls.

Schapiro wants small firms to comply with SOX

January 26, 2009 (investmentnews.com) - Incoming Securities and Exchange Commission chairwoman Mary Schapiro indicated she wants small public businesses to start complying with the Sarbanes-Oxley Act requirement that companies internal controls be audited to ensure that their financial reports are reliable. The 5,000 companies with less than $75 million in market value have never had to comply with this requirement of the 2002 law.

U.S. Companies Stepping Up Convergence Efforts, IFRS Talent in Demand

January 20, 2009 (aefeldman.com) - 40% of the Fortune Global 500 companies currently use IFRSs, and that percentage is expected to increase significantly over the next couple of years. Companies, however, will need to have two sets of books, one in IFRS and one using GAAP for two years prior to the transition for comparison purposes. The accounting issues that are garnering the most attention are revenue and expense recognition. Roughly 33% of those polled by PwC say their companys transfer pricing arrangements under IFRS would be most impacted by changes to revenue recognition. An additional 19% believe changes to expense recognition would have the most significant impact.

New SEC Chair May Delay IFRS Roadmap

January 16, 2009 (webcpa.com) - Mary Schapiro, President-elect Barack Obama's choice as chairman of the Securities and Exchange Commission, signaled that she could delay the planned transition to International Financial Reporting Standards."I would proceed with great caution so we don't have a race to the bottom," she said. "I have some concerns about the IFRS standards generally." Schapiro noted that IFRS is "not as detailed as the U.S. standards. I will take a deep breath and look at this entire area carefully."

XBRL for IFRS published

January 15, 2009 (gaapweb.com) - The International Accounting Standards Committee (IASC) Foundation has released the latest version of the International Financial Reporting Standards (IFRS) Taxonomy 2009, in which IFRS is translated into eXtensible Business Reporting Language (XBRL).

IT: A more vulnerable sector?

January 12, 2009 (thehindubusinessline.com) - Expectations indeed run high for IT companies to sustain performance. It is perhaps these high expectations that led to the misreporting and inflation of numbers for Satyam Computer until recently, among the top IT companies in India. In the wake of the Satyam fraud, one wonders if this glorified sector is vulnerable possibly even more than traditional manufacturing companies, to fraudulent transactions. This article seeks to highlight why the sector may be more exposed to accounting and reporting-related risks in the Indian scenario.

Converting to IFRS

January 9, 2009 (journalofaccountancy.com) - The SEC's proposed road map for the potential use of IFRS in financial statements prepared by U.S. issuers could result in the mandatory use of international standards beginning in 2014, 2015 or 2016, depending on a company's size. Under the plan, the SEC would decide in 2011 whether to proceed with mandatory reporting under IFRS. Although 2014 may seem a long way off, it is not too early to prepare for IFRS conversion. Here are some key activities that will contribute to a successful conversion: