Regarding: USA adopting IFRS-based financial reporting

JOHAN OLOF WALLEN, CPA

PROFESSIONAL SERVICES

Mailing Address:

San Diego, CA 92112-6366

wallencpa@wallencpa.com

Dear Colleague,

Although the adoption of the International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), had been started as an international effort, its reporting effectiveness and logical flexibility quickly elevated the IFRS to be the preferred reporting tool also for USA domestic organizations. The Financial Accounting Standards Board (FASB), in its sanctioning of Generally Accepted Accounting Principles (GAAP), did repeatedly reveal a shifty attitude (in, e.g., its various mark-to-market positions, option measurement, and revenue-recognition issues), which gradually moved the scale away from the FASB in favor of the IASB.

The SEC has released its roadmap for the full adoption of the IFRS in the USA, and the exact date of the mandatory implementation will be decided soon. The move to the IFRS is now inevitable, and, indicatively, the necessary transition from the old GAAP to the more desirable IFRS will therefore require:

Analysis of authoritative standards and interpretive guidance

Accounting and reporting system revisions

Balance-sheet adjustments and one-time journal-entries

Education and training of staff, management, and board

Consistency with taxation-reporting and tax-strategies

Impact on financial-reporting metrics, benchmarks, and ratios

Harmonization of policies-and-procedures, processes, and manuals.

There are several preparatory steps that can be gradually undertaken in order to avoid future bottle-necks and excessive conversion-costs in conjunction with the imperative mandate of adopting the IFRS, either in its full version (Full IFRS) or in the simplified version for Small and Medium-sized Entities (IFRS for SMEs), as issued by the IASB.

Also the Governing Council of the American Institute of Certified Public Accountants (AICPA) has already voted in favor of recognizing the IASB as an authoritative accounting body for purposes of establishing valid and fundamental financial accounting and reporting principles.

IFRS-based financial statements of Small and Medium-sized Entities (SMEs) are more focused on short-term cash-flow, liquidity, balance-sheet-strength, interest-coverage, and solvency-issues. The full implementation of IFRS for SMEs will provide all small USA entities with the opportunity of using a much simplified IFRS-based accounting framework to prepare their financial statements.

Among the first steps for adopting the IFRS is the selection of IFRS accounting policy alternatives such as voluntary exemptions provided by the IFRS-1, "First-time Adoption of IFRS", which assists management in assessing the implications of selecting such alternatives.

Your transition from the obsolete FASB recommendations to the simplified framework provided by the IASB will require commitment, focus, and resources; it will have implication of routines, people, and taxes; and it will be complex, time-consuming, and perhaps even costly, if not handled in a timely fashion.

My standard rate for these services is $200 per hour. My approach guarantees an independent view of your activities, and I can handle special projects during special times. Also for training, staff seminars, and board presentations, at your convenience please contact me at johan@wallencpa.com for a free meeting in your offices.

Thank you for your interest,

Johan

johan@wallencpa.com

Johan Olof Wallen

Certified Public Accountant

CPA "A" License #74226 issued by the State of California Board of Accountancy

My areas of expertise also include:

Accounting Manager/Controller/CFO for hire (temporary, part-time, vacation fill-in, parental-leave fill-in)

Certified audits, reviews, compilations, monthly reporting, special projects and investigations

Seamless transition from FASB reports to IASB future mandatory standards (Full-IFRS or IFRS-for-SMEs)

Internal control, reconciliations, payables and cash management, receivables and collections, inventory management

Budgets, business plans, financing, "what-if" forecasts, cash-flow projections, special research and reports

Cost control, job costing, cost accounting, variance analysis (actual versus budget), costing and pricing

Standard accounting software set-up, initialization, conversion, implementation, training and follow-up

Turnaround and restructuring measures, one-on-one counseling, training, staff seminars, and board presentations.

Thank you again for your interest.

FREE AUDIT

Every year, around this time, I offer free CPA-certified audits on a pro-bono basis to small non-profit organizations (with annual revenues under $1 million) in San Diego County (and elsewhere in California, with just travel-expenses to be paid).

Client participation in certain steps of the audits are required (e.g., providing documentation, pulling documents, and photocopying).

Please inquire by contacting me at johan@wallencpa.com
(certain restrictions may apply).

Johan Olof Wallen, CPA
San Diego, CA

Regarding: Audit

JOHAN OLOF WALLEN, CPA

PROFESSIONAL SERVICES

Mailing Address:

San Diego, CA 92112-6366

wallencpa@wallencpa.com

Dear Colleague,

My areas of expertise include, e. g.:

Audits

Reviews

Compilations

Due diligence

Investigations

Agreed-upon procedures

Pro-forma statements

Personal statements - net-worth

Financing and loan applications

Debt covenants

Forecasts and projections

Budgets and variance analysis

What-if analysis

Financial modeling

Business plans

Feasibility studies

Management consulting

Internal control

Accounting manuals

Policies and procedures

Accounting software

Turnaround and restructuring

Costing and pricing

Cost controls

Training and seminars

Board presentations.

My standard fee for these services is $200 per hour.  At your convenience, please contact me at johan@wallencpa.com .

Thank you,

Johan

Johan Olof Wallen

California Certified Public Accountant