As finance and accounting professionals, it is important to keep up to date with all that is happening on the IFRS front. The IASB and the US FASB continue to move towards their goal of creating a common set of high quality standards. Many changes to IFRS are taking place, with new standards being issued and older standards being revised or replaced.
A clear sign that IFRS is becoming top of mind for everyone – IFRS will be included in the CPA exam starting in 2011. Is your IFRS knowledge where it needs to be? Here is a sample question (borrowed from the Journal of Accounting), do you know the answer?
Question: Under IFRS, changes in accounting policies are
A. Permitted if the change will result in a more reliable and more relevant presentation of the financial statements.
B. Permitted if the entity encounters new transactions, events, or conditions that are substantively different from existing or previous transactions.
C. Required on material transactions, if the entity had previously accounted for similar, though immaterial, transactions under an unacceptable accounting method.
D. Required if an alternate accounting policy gives rise to a material change in assets, liabilities, or the current-year net income.
* Make your guess and see below for the right answer. (Hey – don’t cheat!)
Keep yourself up to date!
The AICPA (American Institute of CPAs) launched www.ifrs.com to help CPAs get ready for the arrival of IFRS. This website is full of useful information including FAQs, trainings, publications and a blog. A great way to keep up to date on all things IFRS, is to add the RSS feed from the www.ifrs.com site to your policyIQ site.
It is as easy as 1 – 2 – 3.
1) Copy this link: http://feeds.feedburner.com/ifrsblog
2) In the Home Module of your policyIQ site, navigate to the RSS Feeds items in the left navigation
3) Select Add from the table toolbar and then paste the URL.
a. Reminder – The Available to Everyone checkbox will add this RSS feed to everyone’s list of RSS feeds. If this checkbox isn’t available to you, no worries, it just means you don’t have permission to add RSS feeds
Unlike some RSS feeds that overwhelm you with too much information or extraneous “news”, the IFRS Blog from www.ifrs.com is good about only posting when there is substantive news. You can be sure to stay on top of critical developments, without wasting your time on information you don’t need!
* The correct answer is A. How did you do?