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Gaap and Ifrs

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Part 1 Background and Overview Part 2 US GAAP and IFRS Part 3 China GAAP and IFRS Part 4 Summary of Convergence Process Part 5 Pros & Cons of Convergence Part 6 The reasons for differences in accounting practice

ww.ifrs.org

+ The International Accounting Standards Board + The International Accounting Standards Committee (IASC) Foundation + Objective – a single set of global financial reporting standards + Aim – convergence between national standards and international

standards
+ IFRS Framework + IFRS SMEs

+ Supported by the Group of 20 Leaders (G20) who, at their September

2009 meeting in Pittsburgh, US.

Country

Status for listed companies as of April 2010

Argentina Required for fiscal years beginning on or after 1 January 2011 Australia Brazil Canada Required for all private sector reporting entities and as the basis for public sector reporting since 2005 Required for consolidated financial statements of banks and listed companies from 31 December 2010 and for individual company accounts progressively since January 2008 Required from 1 January 2011 for all listed entities and permitted for private sector entities including not-for-profit organizations

Country China

Status for listed companies as of April 2010 Substantially converged national standards

European All member states of the EU are required to use IFRSs as adopted by the EU for listed Union companies since 2005 France Germany India Indonesia Italy Japan Mexico Required via EU adoption and implementation process since 2005 Required via EU adoption and implementation process since 2005 India is converging with IFRSs at a date to be confirmed. Convergence process ongoing; a decision about a target date for full compliance with IFRSs is expected to be made in 2012 Required via EU adoption and implementation process since 2005 Permitted from 2010 for a number of

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