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Financial Reporting Goes Global 1
Report on global adoption of unified accounting and reporting standards and
the very latest from the IASCF
Kurt Ramin Chairman (Emeritus), XBRL International, Advisor (IASCF) London, 51.512 / 0.094
November 22, 2007
XBRL at IASC Foundation
http://www.oracle.com/openworld/2007/keynotes.html
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Mission & ObjectivesMission & Objectives
The Mission of the IASC Foundation XBRL Team is to provide users an IASCF developed XBRL taxonomy for consistent adoption and implementation of IFRS standards
The objectives are to: Deliver the XBRL Taxonomy with the same quality, in the same languages
and at the same time as the paper version
Encourage the XBRL implementation wherever IFRS is used
Make sure the Intellectual Property (IP) is protected and respected
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AgendaAgenda
1. Introduction, Organization, History
2. What’s happening over the last year?
3. Update on global IFRS adoption
4. IASB’s future plans and how the very latest will impact the accounting profession
5. What challenges does the future hold for reporting standards?
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704 pages704 pages
Part I: OriginsPart I: Origins
Part II: 1973-1987Part II: 1973-1987
Part III: 1987-2000Part III: 1987-2000
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Document (16).pdf
465 pages From 1966 to 1973 1973 to 1995 1995 to 2001 (IOSCO,
SEC) The New Structure
(Trustees, full time Board, localization of standards and use of technology)
References, Index, Acronyms, Pictures
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IASB and IASC FoundationIASB and IASC Foundation
IASB is made of 14 members making the Standards and has the technical expertise
IASC Foundation is providing the context to achieve the Board mission
Others: Standards Advisory Council (SAC) IFRIC
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Roadmap to ConvergenceRoadmap to Convergence
Norwalk agreement, October 2002 Roadmap: reconciliation by 2009 or earlier Memorandum of understanding, February 2006 Seek progress in areas identified (11 areas) Principles based – new framework SMEs will play a major role Taxonomies: XBRL GL, SMEs, IFRS, US GAAP
(Definition rich) SEC Roundtable, March 6, 2007
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2. What’s happening - 20072. What’s happening - 2007
New Standards
New IFRICs
New Publications
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20072007
New Standards – NO new standards!, but lots of DP’s, Exposure drafts – and comment letters!
New IFRICs – just a couple
New Publications --eifrs Education – Conferences (Zurich, Singapore) Translations
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2513 pages IASCF Constitution Preface to IFRS Framework Due Process Handbook IFRSs 1 to 8 IASs 1 to 41 Interpretations Glossary of terms Index Standard, BC, IG
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2007 Spanish2007 Spanishand Localized and Localized
Editions of IFRSEditions of IFRS
40 languages40 languages
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Principle: Principle: Principle based standardsPrinciple based standards
PrinciplesPrinciples RulesRules
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FASB Codification OverviewFASB Codification Overview
Organizing authoritative US-GAAP by topic
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Objective and StatusObjective and Status
Integrate and topically organize all relevant accounting guidance issued by the U.S. standard setters FASB, AICPA, EITF, SEC.
The codification draft is expected to constituents in 2007 for an extended verification period The objective of the verification process is to ensure that the
codification accurately reflects existing U.S. GAAP Once the Board addresses constituent comments, the
codification will become the single authoritative source of U.S. GAAP and will supersede all existing standards
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Topical StructureTopical Structure
Topics represent a collection of related guidance in the following hierarchy: Topic > Subtopic > Section > Subsection
Each topic is organized into one of four areas: General principles and objectives Overall financial reporting presentation, Transactional and financial statement accounts, Industry.
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Subtopic SectionsSubtopic Sections
Sections are consistent from one subtopic to the next. In the list that follows, topic numbers are represented by XXX,
subtopic numbers by Y; section numbers are the actual numbers:1. XXX.Y.00—Status (References to standards affecting the subtopic)2. XXX.Y.05—Overview and Background3. XXX.Y.10—Objectives4. XXX.Y.15—Scope and Scope Exceptions (if any)5. XXX.Y.20—Topical Definitions / Glossary6. XXX.Y.25—XBRL Definitions7. XXX.Y.30—Recognition (assumes an asset/liability conceptual
framework)8. XXX.Y.35—Initial Measurement (assumes an asset/liability
conceptual framework)9. XXX.Y.40—Subsequent Measurement (assumes an asset/liability
conceptual framework)
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Subtopic Sections, cont.Subtopic Sections, cont.
9. XXX.Y.45—De-recognition (assumes an asset/liability conceptual framework)
10. XXX.Y.50—Other presentation matters (B/S classification, cash flow, EPS, taxes, etc.)
11. XXX.Y.55—Disclosure12. XXX.Y.60—Implementation guidance and illustrations13. XXX.Y.65—Relationships (references to other topics or
subtopics that may be of relevance. For example, the Interim Reporting topic may have discussions of LIFO reserves as the object of an illustration or example. In such cases, the relationships section would refer to that material.)
14. XXX.Y.70—Transition and Open Effective Date Information15. XXX.Y.75—Links to Grandfathered Material
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ED IFRS for SMEsED IFRS for SMEs
ED 254 pages (IG 80 p. BC 48 p.) Definition (no public market – 50 people) Stand alone document Based on concepts and principles of full IFRS Topics omitted (Price level, interim, EPS,
segment, simpler option) Recognition and Measurement (FI, GW and
impairment, less FV for agriculture) Frequency for updates Respond by November 30, 2007
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Possible Simple Format (per period)Possible Simple Format (per period)
Sort statements (Net: assets-liabilities)
1. People
2. Fixed Assets
3. Product (Flow)
4. Financial (Flow)5. Communication
(Information Flow)
Four statements and aligned/ related Disclosure:
1. Statement of Financial Position
2. Cash Flows
3. Recognized Income and Expense for Period
4. Statement of Changes in Equity-NET (including to owners)
Add Related Disclosure:
(People, Fixed Assets, Product, Financial, Communication)
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3. Global adoption3. Global adoption
World Standard Setter’s Meeting
Organizational Changes
Latin America and Columbia
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World Standard Setters MeetingWorld Standard Setters Meeting
September 24, 25 in London 40 Nations participating (Iran, Israel….
Agenda1. Welcome Sir David Tweedie, IASB Chairman2. Adoption and Implementation of IFRSs (Australia,
China, Japan, Canada, Korea, India, Mexico)3. US GAAP/IFRS Convergence Update4. Implementation and Enforcement of IFRSs5. SMEs6. Other special topics (Framework, presentation of
Financial Statements, Fair Value Measurements)
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IFRS adoption in Latin AmericaIFRS adoption in Latin America
Required
Permitted
Future
Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Venezuela
El Salvador, Mexico, Paraguay, Peru
Brazil (2010), Chile (2009) Ecuador (2008)
Uruguay ??? Columbia????
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XBRL International Jurisdictions XBRL International Jurisdictions
UKCA
ESUS
AU
NZ
IE
JPKR
BE
VZ
CO
BR
AR
PT
RU
SG
HK
NOSE
PL
FI
IT
CN
IN
LB
CZ
UA
LUIASB
AE
NL
TR
GR
MTCH
FR
SI
HU
AT
Established Jurisdictions
Provisional Jurisdictions
Projects Ongoing
DE
DK
ZA
Focus in 2008
IL
Ibero-América
TW
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<CurrentAssets contextRef="End_2004" unitRef="EUR">
Tagging of Financial DataTagging of Financial Data
5329000000</CurrentAssets>
UnitContext
<CurrentAssets>5329000000 </CurrentAssets>
RFID - NFC Radio Near Field Frequency Communication Identification
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ERP
System
XBRL GL
Commercial
Others
Business Events
Entities Data Aggregators Users
ProprietarySoftware
ProprietarySoftware
ProprietarySoftware
ProprietarySoftware
Regulators
Assurance
Tomorrow’s Financial and Business Reporting Supply Chain
XBRLXBRL XBRLXBRL XBRLXBRL XBRLXBRL XBRLXBRL
External Reports
Management Reports
Electronic input:
Electronic bank statements
Electronic invoices
Credit cards
Scanning
Paper
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Financial Reporting Goes Global 33
3. 3. Impact on the Accounting ProfessionImpact on the Accounting Profession(Political and technical)(Political and technical)
US SEC (task forces) FEI (Casey speech) PIOB (Audit) Europe (EFRAG and parliament) Capital Markets (stock exchanges) Large software companies (SAP/Oracle) Data aggregators (Thomson/Reuters)
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1 Also in IFRS
2 Convergence
3Multi-language
4No stress
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4. Challenges – Future - Reporting4. Challenges – Future - Reporting
Conventional Standards (Concepts) Technology Localization Currencies and Capital Markets Legal
Read my Blog! (or contact me) http://blog.hitachixbrl.com/2007/09/05/financial-reporting-reform-and-xbrl-par
t-i/
http://blog.hitachixbrl.com/2007/09/12/financial-reporting-reform-and-xbrl-part-2
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<name<name>Kurt Ramin>Kurt Ramin</name></name>
XBRL: Transforming Financial and Business Reporting
XBRL: It’s Unstoppable
<position> Emeritus Chairman, XBRL International Steering Committee</position>
<email>[email protected]</email> 51 30 44 N 0 05 41 W
<Questions/><Questions/>
Kurt Ramin :自中世纪的意大利僧侣发明