The Future of Global Accounting Standards: 2008 & Beyond

Achieving worldwide convergence of accounting standards is a daunting task, and some continue to question whether it is even possible. The U.S. Financial Accounting Standards Board (FASB) and its predecessors have worked for the past 50 years to achieve the goal of a comprehensive set of rules-based accounting standards for U.S. GAAP. The international standard (IFRS) is a principles-based system, and for the past five years, the FASB has worked with the International Accounting Standards Board (IASB) on various projects to converge these standards. However, from a practical standpoint, much remains to be done and there are many unanswered questions, such as:

• What will true global convergence look like? • Will there be one global standards setting body? • Will national accounting standard guidance be permitted and to what extent? • What will be the role of national standards setters such as the FASB? • What impact will national securities regulation have on the accounting standard setting process? • Will XBRL be implemented on an international basis?

This timely, one-day seminar will provide a topical look at the current state of affairs and evolving positions of the SEC, the FASB, and other interested parties on all key issues likely to impact the future of global accounting standards. Facilitated by FASAC Chairman Dennis H. Chookaszian, the seminar will also provide informative discussions about possible structures that could or should emerge, the benefits and drawbacks of each, and possible next steps in the move toward global convergence of accounting standards.

10-Nov-2008 -- 10-Nov-2008ChicagoUSD$1475
NY Institute of Finance - Chicago9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Dennis Chookaszian; ] Mon Level: Basic

Chief financial officers, corporate board directors, audit committee members, accounting managers, public accountants, auditors, regulators, analysts, consultants, and other financial professionals who seek knowledge and insight into the future state and evolution of accounting standards both worldwide and in the United States.
No advance preparation required.
Students will be able to:
  • Describe the current state of global/national accounting standards
  • Describe the potential future direction of accounting standards
  • Differentiate between international standards (IFRS) and national standards
  • Describe the role national accounting guidance might play in a future system
  • Explain the role & impact of IFRS on the future state of accounting standards
  • Compare & contrast future states of accounting standards in various countries
  • Describe the implications of potential future accounting organization structures
  • Explain the evolution of XBRL and the implementation challenges
  • Describe potential systems & implementation issues of a future state
A fundamental understanding of U.S. GAAP accounting & financial reporting principles
Introduction
  • History & background

Current State - US

  • Converged principles
  • Other Principles
  • Current Guidance
  • Voluntary & supplementary information
  • National regulators (SEC, etc.)

Current State - International

  • Converged principles
  • Other principles
  • Current guidance
  • Voluntary & supplementary information
  • National regulators (SECs, etc.)

Potential Future Direction - Moving to:

  • Single set of worldwide standards
  • Full interactive Web-enabled disclosure
  • User access to accounting data embedded in filed documents access to accounting taxonomy
  • ''Brand control'' of IFRS to ensure consistency
  • National Level Retention
  • Jurisdictional control of securities markets & financial reporting
  • Guidance related to accounting principles consistent with IFRS

Potential Future Direction - Resulting in:

  • Single set of international accounting standards, representing:
  • ‘’Lowest common denominator’’for all jurisdictions
  • Minimum level of financial reporting consistency

Potential Future State

  • Single Set of Uniform Accounting Principles (IFRS)
  • National Differences (Accounting Standard Guidance)
  • USA
  • Japan
  • China
  • EU
  • Other

Potential Future Organization

  • Funding
  • IASC Foundation
  • IASB
  • Standards Advisory Council (SAC)
  • Role of US Regulators - SEC (Public), Others (Nonpublic)
  • Financial Accounting Foundation (FAF), Role of US FASB, FASAC, Other Advisory Councils

Potential Systems Implications - Current Systems Structure

  • XBRL
  • Codification
  • Drawbacks (Two views of ''GAAP'' requiring two systems)

Potential Systems Implications - Potential Future Structure

  • Single System
  • XBRL/Codification
  • Benefits (Single view of ''GAAP'' in one strong platform)

Issues to Consider

  • Views through Codification and XBRL should be identical
  • There should only be a single set of data definitions & glossary
  • Accounting Taxonomy would become part of standard setting process
  • XBRL would become method for accessing Non-GAAP data
  • Infrastructure and staff already exist within FAF
Instructor-led Demos and Group Discussions

Lunch included for all students taking day classes.