European finance executives who have taken part in recent mergers and acquisitions stress that planning is critical for the integration of accounting functions – before the deal is complete. But a survey by Ernst & Young showed that 39% of respondents said their companies began planning for the accounting integration after the deal had been completed.
The IFRS Foundation has dropped a proposed requirement that would have insisted that participants in its new forum of national and regional standard setters agree to promote the adoption of IFRS. The move clears the way for FASB’s participation in the forum.
Experts say companies need to conduct early-stage planning for the effects of the new revenue recognition standard that FASB and the International Accounting Standards Board are developing. Although the effective date of the new standard is expected to be years away, proposed retrospective application requirements may make it wise for companies to begin tracking the new numbers early.
The US Federal Reserve has issued guidance to encourage US banks with more than $10 billion in total assets to have their internal audit functions report to the chief executive – a move that could influence similar changes in other industries, observers of the profession say.
An Accounting Standards Update (ASU) issued Thursday by the US Financial Accounting Standards Board (FASB) makes it clear that a 2011 standard on offsetting disclosures does not apply to ordinary trade receivables and receivables. ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures About Offsetting Assets and
Financial statement preparers’ concerns about disclosure overload came through loud and clear in a survey recently conducted by the International Accounting Standards Board (IASB).
UK researchers reported inconsistencies in compliance with certain impairment disclosure requirements across jurisdictions in Europe in a study released this month, indicating that IFRS are not being evenly applied.
The International Auditing and Assurance Standards Board (IAASB), one of many organisations attempting to tackle this challenge, has issued a consultation paper, A Framework for Audit Quality, that it hopes will generate discussion and actions that will improve audits.
Ernst & Young research identified four areas in which high-performing companies did a better job handling the challenges of the harsh global economic conditions. Find out what lessons can be learned from high performers worldwide.
The mechanisms for continuing to facilitate global comparability in accounting standards will change over the next few years. But the leaders of two major standard-setting boards said during a meeting in New York City that the commitment to global comparability remains.
With proposed new requirements coming for the auditor’s report and new initiatives such as integrated reporting emerging, international auditing standards appear likely to undergo a period of substantial change.
A greater percentage of companies are giving raises to the internal audit department, which reflects the increasing role in recent years as regulatory demands have also increased. An Institute of Internal Auditors survey also showed that those with specialty skills were likely to be paid more.
Globalisation is less advanced than perceived, research by Deutsche Post DHL and the IESE Business School in Spain suggests. The DHL Global Connectedness Index highlights some opportunities for improvement.
Western Europe and North America are still attractive to foreign investors, but not as attractive as the top five emerging market hot spots. Even lesser-known emerging economies are gaining ground.
As another year appears ready to pass without a US commitment to IFRS, an IFRS Foundation trustee and a UK accounting body say separately that the International Accounting Standards Board (IASB) needs to wrap up its current convergence projects with FASB. But the trustee, James Quigley, said the IASB’s cooperation with FASB should continue after the projects are finished.
Few multinationals can resists the lure of big, fast-growing BRIC markets such as Russia. Educational attainment in the country is good, but with the market economy still comparatively new, a hangover of old cultural attitudes persists. There is a dearth of leadership skills and employees seek short-term pay hikes over long-term career development. In the first CGMA panel discussion in Moscow, finance leaders from top companies address the talent challenge in emerging markets.
IASB Chairman Hans Hoogervorst used a speech as an opportunity to push for the US Securities and Exchange Commission (SEC) to allow US public companies to adopt IFRS for their financial reporting. On the same stage, FASB Chairman Leslie Seidman said US financial reporting needs clearer guidance than the IASB has offered.
