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Will there be differences in the application or timing of convergence changes between private companies vs. public companies? (Webinar Attendee Question)

This question was asked during the Proformative webinar "Convergence of Financial Instruments, Leasing, and Rev Rec Standards."  A video of the webinar can be viewed here:


Topic Expert
Sunil Thukral
Title: Controller/Technical Accounting Advisory..
Company: Consultant
(Controller/Technical Accounting Advisory/ SEC Reporting, Consultant) |

No firm decision on this as of yet, as we do not even know if IFRS will ever be adopted in the U.S.

However, I have seen other countries allowing private companies to adopt simplified version of GAAP. For example, in Canada, which adopted IFRS in 2011, allows the private companies to either report under IFRS or report under other simplified accounting standards that are based on the old Canadian GAAP (i.e. "Accounting Standards for Private Enterprises" (ASPE)). Hence, if a private company in Canada does not plan to go public, it is better to report under these simplified accounting standards - ASPE. I have helped some private companies in Canada to transition from Canadian GAAP to ASPE and it has not been a very substantial exercise as there are fewer changes and less disclosure.

I will presume a similar approach might also be followed in U.S. as this will make the transition much easier for the private companies.


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