The ripple effect of the convergence of U.S. GAAP with international accounting standards is becoming more of a tidal wave as more and more countries are adopting the international standards. Already far more countries permit or require international accounting standards than ever before. It's not like the FASB has been unaware of this as they have been working on convergence for over a decade now, but for many practitioners the fact that they might need to learn international standards is becoming a looming reality.

Note: Reporting of CPE credit to a CPA's state board is the responsibility of the CPA. Subscribers to CPE Network Accounting & Auditing Report may not receive duplicate credit for this material, which previously aired in the August 2008 and January 2009 editions of this program.

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Chapter 1 contains a discussion with Tom Ratcliffe, PhD, CPA, raising the awareness of international financial reporting standards and the standard setting process both in the U.S. and internationally.

Chapter 2 contains a discussion with J. Russell Madray, CPA, CIA, CMA, CFM, regarding reviews the Securities and Exchange Commission's roadmap to adoption of international financial reporting standards. There are several milestones listed that need to occur before the SEC makes their decision regarding mandated use of IFRS.

Chapter 3 contains a discussion with Tom Ratcliffe, PhD, CPA, regarding the differences between recently issued guidance from the IASB and the existing guidance from the FASB on accounting for business combinations and noncontrolling interests.

Chapter 4 contains supplemental materials, including (1) IFRS versus GAAP Convergence: Heightening Awareness; (2) SEC Road Map for Transition to IFRS; and (3) IFRS and U.S. GAAP: Business Combinations & Noncontrolling Interests.

Chapter 5 contains review problems that help illustrate the topic.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the client or the practitioner on behalf of the client.

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

• Discuss how European Union GAAP is different from IFRS

• Discuss how much guidance will likely be available under IFRS and how many U.S. investors are already looking at financial statements prepared using it

• List the milestones the SEC considers necessary to have met before widescale adoption of IFRS is permitted

• Identify where the transitional guidance is located

• List the effective dates of the applicable guidance

• Analyze which guidance is more subjective in nature

• List which areas of accounting still have substantial differences in their accounting treatment

Thomas A. Ratcliffe, PhD, CPA, is Director of Accounting & Auditing at Wilson, Price, Barranco, Blankenship & Billingsley, PC, in Montgomery, Alabama. He is also the Director Emeritus of the School of Accountancy at Troy University in Troy, Alabama.