SEC holds fourth roundtable on IFRSs

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06 Aug 2008

Deloitte & Touche LLP (United States) has published a Heads Up newsletter summarising the discussions at the SEC's fourth roundtable on IFRSs, held on 4 August 2008. Topics covered at the roundtable included panelists' experience with using IFRSs and US GAAP during the current financial crisis, the best way to develop stronger standards, and the direction of convergence efforts between the two sets of standards.

Click to Download the Heads Up Newsletter (PDF 114k).

Key Messages from the SEC Roundtable Participants:

  • IFRSs have held up quite well in the face of recent market turmoil. Some panelists believed that IFRSs outperformed US GAAP in many areas, such as off-balance-sheet transactions involving special-purpose entities, and have resulted in more robust, transparent disclosures.
  • Improvement is needed to the fair value reporting requirements under both IFRSs and US GAAP. Some panelists specifically pointed to the requirement under FASB Statement 157 Fair Value Measurements for an entity to consider its own credit standing when determining the fair value of its liabilities, and the resulting effect on the income statement.
  • Improving revenue recognition guidance under IFRSs should be a priority for standard setters.
  • Consistent application of accounting standards and financial statement presentation are important to investors.
  • The transition to IFRSs gives companies the opportunity to reassess their accounting policies and disclosures to ensure that their accounting reflects the true economics of the transactions and that their financial statements are sufficiently transparent.

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