IFRS & US GAAP: Foundational Differences & Framework Trends Webinar
Overview
This course explores the foundational concepts underlying IFRS and US GAAP by examining and comparing their respective conceptual frameworks. While both frameworks are built on similar objectives, they differ in key principles, standard-setting approaches, and practical application. This program provides CPAs and other financial professionals with insights into the philosophical divide between principles-based and rules-based standards and highlights how these differences impact financial reporting, convergence efforts, and future standard-setting priorities. An expert will discuss:
- The core elements and objectives of the IFRS and US GAAP conceptual frameworks
- Key differences in recognition, measurement, and presentation principles
- The historical efforts toward convergence and the reasons for divergence
- Recent and emerging developments on each board’s agenda
- Implications for financial statement comparability and global reporting consistency
Objective
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.
Emphasis
- 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
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