PricewaterhouseCoopers Issues Imperatives for U.S. Companies on International Accounting...

PricewaterhouseCoopers Issues Imperatives for U.S. Companies on International
Accounting Standards
Accounting Changes Seen As More Complex and Significant Than Prior U.S. GAAP
Changes

NEW YORK, July 14 /PRNewswire/ -- Despite uncertainty about timing of the move
to International Financial Reporting Standards (IFRS) in the United States,
PricewaterhouseCoopers (PwC) maintains that the adoption of IFRS in the U.S.
is inevitable, and that there is still overwhelming support for a single set
of global accounting standards.

We expect steadily increasing convergence activity followed by eventual
conversion to IFRS. In the short term, companies with non-U.S. subsidiaries
will experience the greatest impact, as the rest of the world continues to
adopt IFRS, including territories that will begin to allow or require IFRS for
statutory purposes. The release of new IFRS guidelines for small and
medium-sized entities, released last week, may accelerate this global
adoption.

Additionally, all U.S. businesses will face an unprecedented wave of U.S. GAAP
changes, influenced by - and, in many instances, conforming to IFRS - over the
next several years. To that end, we have identified six imperatives for U.S.
companies, which we will explore in greater detail in a webcast on Wednesday.
1. Focus on the challenge. The next several years will bring major
changes
to U.S. financial reporting. Whether changes arrive through
convergence,
an SEC-mandated move to IFRS, or continued IFRS adoption by
subsidiaries
and counterparties, the effect on U.S. businesses will be considerable.
2. Perform an assessment. Consider the effects these alternative paths
could have and identify business, accounting, tax, investor, control,
systems and work-force related issues.
3. Be ready to adapt to ongoing change. Use scenario planning to
incorporate likely convergence and IFRS adoption expectations into your
strategic thinking and business planning.
4. Monitor actual changes. Closely follow SEC actions and new FASB and
IASB
standards. Consider how they will influence your non-U.S.
counterparties
(customers and vendors) and affect your reporting, long-term
contractual
commitments, tax structures, financings, systems and controls. (For
real-time alerts on updates from FASB, IASB and the regulators, see PwC
DataLine homepage on CFOdirect:

http://cfodirect.pwc.com/CFODirectWeb/Controller.jpf?NavCode=TMCB-4L9HAT)
.
5. Maintain corporate oversight. Influence transition timing, strategies,
and policy decisions of non-U.S. subsidiaries that are or may soon be
IFRS users.

6. Identify what you can do now. Stay focused on those aspects of
convergence and conversion that have a long lead-time and consider
small
one off projects and "easy wins" where desirable.

We believe the SEC will ultimately propose a revised roadmap, and we expect to
see an increase in SEC-related IFRS activity toward the end of this year or
beginning of 2010, as progress is made on the financial crisis and regulatory
oversight matters.

The accounting changes stemming from continued convergence are more complex
and carry greater significance than many prior U.S. GAAP changes. Convergence
projects are expected to be completed in critical areas such as revenue
recognition, leasing, consolidation, financial instruments, debt and equity.

Furthermore, the continued global adoption of IFRS will increasingly drive the
behavior of companies' non-U.S. subsidiaries, vendors, and counterparties.
This will impact areas such as financial reporting, tax policy, M&A activity,
as well as other people, process and systems matters. U.S. companies should
actively participate in the adoption process of their non-U.S. subsidiaries.
Failure to do so risks costly inefficiencies or incompatibilities when they
begin IFRS adoption in the U.S.

PwC will be hosting a webcast panel discussion of the results of the FASB and
IASB's Discussion Papers for Revenue Recognition and Leasing. Speakers on the
panel will provide an overview of these FASB / IASB joint projects, explore
significant differences between the proposal and current standards, explain
how companies may be effected, and discuss actions companies should be taking
now. To participate, please register at www.meetpwc.com/IFRS0715.

For more on PwC's IFRS resources, visit www.pwc.com/usifrs.

About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax
and advisory services to build public trust and enhance value for its clients
and their stakeholders. More than 155,000 people in 153 countries across our
network share their thinking, experience and solutions to develop fresh
perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a separate and
independent legal entity.

(C) 2009 PricewaterhouseCoopers LLP. All rights reserved

SOURCE PricewaterhouseCoopers

Steven Silber of PricewaterhouseCoopers LLP, +1-646-471-4059,
steven.g.silber@us.pwc.com