The handbook to IFRS transition and to IFRS U.S. GAAP dual reporting : interpretation, implementation and application to grey areas

847 Pages·2012·13.02 MB·English

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WILEY
The Handbook to
IFRS Transition
and to IFRS U.S.
GAAP Dual Reporting
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WILEY
The Handbook to
IFRS Transition
and to IFRS U.S.
GAAP Dual
Reporting
Interpretation, Implementation
and Application to Grey Areas
By
Francesco Bellandi, CPA, CA, ACCADipIFR, MBA
A John Wiley & Sons, Ltd., Publication
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This edition first published 2012
© 2012 Francesco Bellandi
Registered office
John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom
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This book contains criticism, contrast and commentary that may have origin in material copyrighted by the IASCF
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Committee Foundation, material copyrighted by the FAF/FASB the Financial Accounting Foundation and the
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copyrighted by the AICPA, Copyright © by the American Institute of Certified Public Accountants, Inc.
Some portions of the Book and some Exhibits are reused or adapted, with permission, from Bellandi, F., 2009.
Accounting for Equity and Other Comprehensive Income, Dual Reporting under U.S. GAAP and IFRSs. [e-book]
Rome, Casa Editrice Universita` “La Sapienza”.
This Book is not a substitution for reading the full text of all IFRSs and U.S. GAAP pronouncements. Complete
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ISBN978-0-470-97712-5
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CONTENTS
Page
Chapter Title No.
Preface ........................................................ xxxiii
AbouttheAuthor ............................................... xxxv
1 IntroductionandScopeofBook .................................. 1
1.1 NatureofAccountingLiteratureandPertinentPronouncements 1
1.2 SignificanceoftheIFRSTransition .......................... 1
1.3 IFRSTransitionScenario ................................... 3
1.4 ScopeoftheBook ......................................... 6
1.4.1 TheDualReportingPerspective ...................... 6
1.4.2 IFRSMigration,Transition,orFirst-TimeAdoption .... 7
1.4.3 WhythisBookIncludesGuidancetoForeign
PrivateIssuers ...................................... 9
1.4.4 OtherUniqueFeaturesofthisBook ................... 9
1.4.5 UseofthisBookinJurisdictionsOtherthantheU.S. .... 10
1.4.6 TheBenefitsofReadingthisBook .................... 10
2 IFRSFirst-TimeAdoptionRequirementsandInteractionwithU.S.
GAAPandSECRulesandRegulations ......................... 11
2.1 ChapterPreview ........................................... 11
2.2 IFRS1AmendmentsandEffectiveDates ..................... 11
2.2.1 HistoryofIFRS1 ................................... 11
2.2.2 RestructuredIFRS1 ................................. 12
2.3 RationaleofIFRS1 ........................................ 12
2.3.1 First-TimeAdoptionofaComprehensiveBasisof
Accounting ......................................... 12
2.3.2 DerogationfromtheBasicPrincipleofRetrospective
Application ......................................... 12
2.3.3 IFRS1versusSIC-8 ................................. 18
2.3.4 MainRationalesofIFRS1 ........................... 18
2.4 AccountingStepsinMigratingtoIFRSs ...................... 18
2.5 FirstIFRSFinancialStatements ............................. 20
2.5.1 Terminology ........................................ 20
2.5.2 FirstversusSubsequentIFRSFinancialStatements ..... 21
2.5.3 WhatFirstIFRSFinancialStatementsareandWhat
TheyareNot ........................................ 21
2.5.4 ExternalUse ........................................ 21
2.5.5 CompleteSet ....................................... 22
2.5.6 PrimaryFinancialStatements ......................... 22
2.5.7 LocationandContextoftheFirstIFRSFinancial
Statements .......................................... 23
2.5.8 FinancialStatementsofEntitiesIncorporatedintheFirst
IFRSConsolidatedFinancialStatements ............... 24
2.5.9 IFRSFinancialStatementsofOtherEntitiesIncludedina
Registrant’sReport .................................. 24
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viii Contents
2.5.10 PreviousGAAP .................................... 25
2.5.10.1 TimingofUseofPreviousGAAP .......... 25
2.5.10.2 PreviousversusHome-CountryGAAP ..... 25
2.5.10.3 UseofDifferentSetsofLocalGAAP ....... 26
2.5.10.4 TheImpactofPresentationCurrency ....... 26
2.5.10.5 RAP/SAPorOCBOA ..................... 27
2.5.11 ReissuedFinancialStatements ....................... 27
2.5.12 DifferenceswithProFormaFinancialStatements ...... 28
2.6 EntitiesAffectedbyIFRS1 ................................. 28
2.6.1 WhichCompaniesMustandWhichMayNot
UseIFRS1 ........................................ 28
2.6.2 ConsolidatedversusSeparateversusEntity’s
FinancialStatements ................................ 28
2.6.3 InterimFinancialStatements ........................ 29
2.7 CompliancewithIFRSs .................................... 29
2.7.1 TheStatementofCompliancewithIFRSs ............ 29
2.7.2 StatementofCompliancewiththeIFRSforSMEs ..... 29
2.7.3 FirstTime ......................................... 29
2.7.4 AdherencetoIFRSs ................................ 30
2.7.5 StatementAccuracy ................................ 30
2.7.6 TheMeaningofIASB-IFRSs ........................ 31
2.7.7 CompliancewithIFRSasAdoptedbytheEU ......... 31
2.7.8 WhethertheUseofanEndorsedVersionofIFRSsisa
QualifiedCompliance .............................. 32
2.7.9 DualStatementofCompliancewithIASB-IFRSsand
JurisdictionalIFRSs ................................ 32
2.7.10 SingleStatementofCompliancewithIASB-IFRSsby
JurisdictionalIFRSAdopters ........................ 33
2.7.11 RelianceuponHomeStandardSetter’sCompliance
withIFRSs ........................................ 33
2.7.12 LocationoftheStatementofCompliancewithIFRSs .. 34
2.7.13 Auditor’sOpiniononCompliancewithIFRSs ......... 34
2.7.14 ReturntoIFRSs .................................... 35
2.7.15 ReturntoIFRSforSMEs ........................... 36
2.7.16 DatefromWhichCompliancecanbeAsserted ........ 36
2.8 TransitionDate ............................................ 37
2.8.1 DeterminationoftheTransitionDate ................. 37
2.8.2 TransitionDatewhenanEntityPresentsMoreThanOne
YearofIFRSComparativeFinancialStatements ....... 37
2.9 AccountingPolicies ........................................ 37
2.9.1 BasicRule ......................................... 37
2.9.2 EffectiveDateThreshold ............................ 37
2.9.3 TransitionalProvisions ............................. 38
2.9.4 EarlierAdoptionofNewlyIssuedIFRSs .............. 38
2.9.5 EarlierAdoptionofIFRS9 .......................... 39
2.9.6 EndorsementLag .................................. 41
2.9.7 OverrideofIAS8 .................................. 41
2.9.8 CorrectionofErrors ................................ 42