To provide CPAs and other financial professionals with an in-depth understanding of the conceptual frameworks underpinning IFRS and US GAAP, highlighting the key differences between principles-based and rules-based approaches and their implications for financial reporting, standard-setting, and global comparability.

• Conceptual Framework Comparison
  – Purpose and role of a conceptual framework
  – Objectives of financial reporting under IFRS and US GAAP
  – Overview of the IASB and FASB frameworks
  – Qualitative characteristics of useful financial information
  – Differences in fundamental and enhancing qualitative characteristics
• Principles-Based vs. Rules-Based Standards
  – Core attributes of principles-based systems (e.g., IFRS)
  – Core attributes of rules-based systems (e.g., US GAAP)
  – Strengths and weaknesses of each approach
  – How conceptual frameworks influence standard-setting philosophy
• Historical Convergence Efforts
  – 2002 Memorandum of Understanding between IASB and FASB
  – Progress and challenges in achieving convergence
  – Examples of converged and non-converged standards (e.g., revenue recognition, leases, financial instruments)
  – Discontinuation of joint work program post-2014
• Divergence in Current Practice
  – Differences in key areas such as:
     – Leases
     – Financial instruments
     – Distinguishing liabilities from equity
     – Post-employment benefits
  – How interpretive bodies (e.g., IFRS Interpretations Committee) contribute to divergence
• Looking Forward
  – Ongoing projects and priorities of IASB and FASB
  – Impact of differing agendas on global comparability
  – Future direction of each board’s conceptual and technical work

To provide CPAs and other financial professionals with an in-depth understanding of the conceptual frameworks underpinning IFRS and US GAAP, highlighting the key differences between principles-based and rules-based approaches and their implications for financial reporting, standard-setting, and global comparability.

DETAILED LEARNING OBJECTIVES

• Identify the purpose of the 2002 FASB and IASB agreement

• Distinguish between principles-based and rules-based accounting frameworks

• Recognize a common area of difference between IFRS and US GAAP

• Describe how goodwill impairment testing is performed under IFRS

• Understand the single lessee model under IFRS 16 lease accounting

• Identify which framework allows LIFO in inventory accounting

• Explain how development costs are treated under IFRS when certain criteria are met

• Recognize differences in financial instrument classification flexibility between IFRS and US GAAP

• Conceptual Framework Comparison
  – Purpose and role of a conceptual framework
  – Objectives of financial reporting under IFRS and US GAAP
  – Overview of the IASB and FASB frameworks
  – Qualitative characteristics of useful financial information
  – Differences in fundamental and enhancing qualitative characteristics
• Principles-Based vs. Rules-Based Standards
  – Core attributes of principles-based systems (e.g., IFRS)
  – Core attributes of rules-based systems (e.g., US GAAP)
  – Strengths and weaknesses of each approach
  – How conceptual frameworks influence standard-setting philosophy
• Historical Convergence Efforts
  – 2002 Memorandum of Understanding between IASB and FASB
  – Progress and challenges in achieving convergence
  – Examples of converged and non-converged standards (e.g., revenue recognition, leases, financial instruments)
  – Discontinuation of joint work program post-2014
• Divergence in Current Practice
  – Differences in key areas such as:
     – Leases
     – Financial instruments
     – Distinguishing liabilities from equity
     – Post-employment benefits
  – How interpretive bodies (e.g., IFRS Interpretations Committee) contribute to divergence
• Looking Forward
  – Ongoing projects and priorities of IASB and FASB
  – Impact of differing agendas on global comparability
  – Future direction of each board’s conceptual and technical work