IFRS A U.S. Preparer’s Perspective

Kevin McBrideAccounting Policy

ControllerIntel Corporation

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Challenges To IFRS Adoption

• Substantial differences in certain areas– Considerable work to adopt IFRS– Convergence projects adds uncertainty and complexity– Not just an accounting exercise

• Principles-based vs. rules-based standards– Increase use of professional judgment

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IFRS Adoption in US Conceptual Timeline/Milestones

…2008Statutory AnalysisCodification

2009-2010SACPoliciesEducationGovernanceSystems

2011-2012SACPEGSParallel ReportingControls

2013 FS Reporting Accelerated Filers Compulsory

2018 All Issuers Compulsory

IASB/FASB Convergence

SEC Transition Framework

• Lock-down agenda and form of final standards

• Transition framework is critical

• Consistent global application uncertain

• Overcome our rules-based culture

Significant changes required during next five years

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Transition Framework

Identify Differences

Educate Decision Makers

Select Policies

Model IFRS FS

System Specifications

Changes

Business Process Changes

Implement IFRS, Systems and Processes

Report and Disclose IFRS

Educate Users

The Competency

The Change

The Implementation

The Adoption