Accounting, Financial, Taxation

Outright adoption of IFRS or convergence with these standards is now a global phenomenon that is rapidly gathering pace. Australia, Russia, the entire European Union, several countries in the Middle East and Africa, and others have decided on a wholesale, mandatory change to IFRS, while the US, South Africa, Singapore and Malaysia, to name but a few, are committed to local standards’ convergence with the international benchmark. How about Indonesia? Are we going to be an IFRS wholesale mandatory like Australia, Russia, and European Union? Or committed to our PSAK standard only? Are we ready for IFRS? Or simply don’t know yet? It might be tempting to think “we can wait until IFRS are finalized”, but when will that be? The standards are always evolving, but the information requirements will remain the same and external pressures are climbing?

 
The Changing Financial Reporting Environment (Perubahan Lingkungan Pelaporan Keuangan)

Technology informasi yang berkembang pesat telah mengubah lingkungan pelaporan keuangan secara dramatis, mengurangi batasan jarak fisik dan mampu membuat informasi menjadi tersedia di seluruh dunia hanya dengan sekali pencet tombol (enter) dari sebuah computer di tengah perkebunan di desa terpencil. Kemajuan ini membawa jutaan investor (jika tidak milyaran) ke lantai pasar modal di seluruh penjuru dunia. Antusiasnya para investor tidak terhalangi oleh batasan negara, misalnya: Investor dari Amerika bisa dengan mudah ber-investasi di Eropa atau di Singapore atau bahkan di Indonesia, and vice versa.

Information is the lifeblood of the capital markets

kata Sam DiPiazza dan Bob Eccles (PricewaterhouseCoopers CEO) pada bukunya: Building Public Trust.

 
Ke-efektif-an pasar dunia ini tergantung pada ke—tepat waktu—an dari informasi keuangan yang transparan, dapat dibandingkan dan relevan. Bukan hanya investor dan analyst yang membutuhkan informasi seperti ini, melainkan juga dibutuhkan oleh stakeholder lainnya (pekerja, suppliers, customers, institusi penyedia credit, bahkan pemerintah). Mereka (stakeholders) di jaman globalisasi ini bukan hanya sekedar ingin mengetahui informasi keuangan dari satu perusahaan saja, melainkan dari banyak perusahaan (jika bisa mungkin dari semua perusahaan) dari seluruh belahan dunia, untuk tujuan benchmarking, membandingkan antar industry vertical maupun horizontal. Benchmarking adalah sangat crucial jika mau competitive dalam global business di masa sekarang ini. Jika tidak, maka akan tergilas.

Pertanyaannya adalah bagimana kebutuhan ini bisa terpenuhi jika perusahaan-perusahaan masih memakai tata cara, bentuk dan prinsip pelaporan keuangan yang berbeda-beda?, Amerika memakai FASB dan US GAAP, Indonesia memakai PSAK-nya IAI, uni eropa memakai IAS dan IASB.

Itulah kira-kira yang melatar belakangi gaungnya adopsi IFRS belakangan ini.

 
The Benefits of IFRS

Membuat perubahan ke IFRS, artinya anda sedang mengadopsi bahasa pelaporan keuangan global, yang akan membuat perusahaan (business) anda bisa dimengerti oleh global market (pasar dunia). Thus, jika kinerja perusahaan anda memang memiliki nilai jual yang pantas, maka poptensi trade yang dihasilkan logikanya akan lebih bagus dibandingkan ketika perusahaan anda belum mengadopsi IFRS dalam pembuatan laporan keuangannya. The big-5 accounting firm mostly mengatakan bahwa banyak dari perusahaan-perusahaan yang telah mengadopsi IFRS mengalami kemajuan yang significant dalam rangka memenuhi maksud mereka memasuki pasar modal dunia (global).

PricewaterhouseCoopers dalam publikasinya “Making A change To IFRS” yang baru saja saya baca, mengatakan:

Financial reporting that is not easily understood by global users is unlikely to bring new business or capital to a company. This is why so many are either voluntarily changing to IFRS, or being required to by their governments. Communicating in one language to global stakeholders enhances confidence in the business and improves finance-raising capabilities. It also allows multinational groups to apply common accounting across their subsidiaries, which can improve internal communications, and the quality of management reporting and group decision-making. At the same time, IFRS can ease acquisitions and divestments through greater certainty and consistency of accounting interpretation. In increasingly competitive markets, IFRS allows companies to benchmark themselves against their peers worldwide, and allows investors and others to compare the company’s performance with competitors globally. Those companies that do not make themselves comparable (or can’t, because national laws stand in the way) will be at a disadvantage and their ability to attract capital and create value going forward will be undermined.

 

 

Is Making Change To IFRS a Big Deal?

Jika anda bermaksud atau sedang berusaha beralih ke IFRS, saya ucapkan goodluck, anda bukanlah sekedar berganti aturan akuntansi (accounting rules) semata. IFRS adalah sebuah “System Pengukuran Kinerja Baru”, a new primary GAAP yang harus di umumkan kepada semua pihak di perusahaan (organisasi) anda. Beralih ke IFRS artinya anda akan atau sedang “pola pikir pegawai accounting/keuangan dan bagian lain di perusahaan anda dalam bekerja. Ini akan membutuhkan “decesive shift” dalam “strategic management” perusahaan (organisasi) anda.

 
PricewaterhouseCoopers:

Transition often affects many areas, including:

1. Product viability
2. Capital Instruments
3. Derivatives and hedging
4. Employee benefits

The list goes on: fair valuations, capital allocation, leasing, segment reporting, revenue recognition, impairment reviews, deferred taxation, cash flows, disclosures, borrowing arrangements and banking covenants.

So kesimpulannya: beralih ke IFRS bukanlah sekedar pekerjaan mengganti angka-angka di laporan keuangan anda, tetapi mungkin akan mengubah pola pikir dan cara semua element di dalam perusahaan.

 
IFRS Vs GAAP; Principles—Based Vs Rules

Although there has been much conjecture about the need to teach IFRS as a “principles-based” system versus teaching U.S. GAAP as a “rules-based” system, this may be more jargon than anything. In a 2003 Sarbanes-Oxley-mandated study, the sec said neither U.S. GAAP nor IFRS can be described as one or the other. Both have aspects of each” (Susan Schott Karr, Financial Executive; Morristown).

Sementara itu Munter dari KPMG mengatakan:

The distinction between IFRS and U.S. GAAP has more to do with industry guidance (IFRS has none) and application guidance (U.S. GAAP has more)”, seperti di lansir oleh wordsuite .com.

 

 

Dari Corporate ke Campus

Bagi pengusaha pada umumnya, yang menjadi bahan pertimbangan apakah akan beralih ke IFRS atau tidak adalah “Apakah implementasi IFRS akan menghasilan incremental benefit atau tidak?”. Tetapi bagi perusahaan-perusahaan yang sudah go international, atau yang memiliki partner dari Uni Eropa, Australia dan Russia dan beberapa Middle East countries, tentu sudah tidak punya pilihan lain selain “mau tidak mau harus mulai berusaha menerapkan IFRS” dalam pelaporan keuangannya jika masih mau berpartner dengan mereka.

Perubahan tata cara pelaporan keuangan dari GAAP (atau PSAK atau lainnya) ke IFRS berdampak sangat luas. IFRS akan menjadi “kompetensi wajib-baru” bagi para pekerja accounting.

Saya sendiri sudah melihat faktanya, sudah begitu banyak e-mail masuk dari pengunjung blog ini yang menanyakan, apakah saya mempunyai buku ketentuan-ketentuan IFRS. Rekan-rekan yang bekerja di representative office atau subsidiary perusahaan asing mulai dituntut untuk mengetahui dan bisa membuat laporan keuangan ber-standard IFRS. Mereka begitu desparately untuk dapat mempelajari ketentuan IFRS, sampai mereka rela untuk membeli e-book khusus aturan IFRS, sebuah tuntutan yang lebih mendesak dari apapun untuk saat ini. Penguasaan ketentuan IFRS adalah the only tool yang bisa menyelamatkan career-nya yang terancam.

Ketika saya mulai membuka category “Accounting Job Vacancies” di blog saya yang baru “Accounting, Financial, Taxation (baru)“ sudah ada perusahaan yang mensyaratkan “IFRS capability”. Wow! Mungkin saya yang ketinggalan dalam hal ini. Itulah yang mendorong saya untuk mendedikasikan waktu akhir pekan saya kemarin untuk khusus mengumpulkan informasi perkembangan IFRS.

Okay, sepertinya rekan-rekan yang sedang giat-giatnya, berusaha keras untuk mengumpulan informasi, mau tidak mau harus ikut mengikuti workshop-workshop atau courses atau ceminar yang diselenggarakan oleh “the big 5 accounting firms”, termasuk membeli buku maupun e-book IFRS. Tidak ada cara lain, karena memang itulah satu-satunya short-cut yang tersedia saat ini untuk cepat bisa memahami dan menguasai ketentuan IFRS.

The next questions are:

1. Apakah calon-calon “accountancy bachelor degree” di Indonesia yang akan graduate setiap tahun, yang jumlahnya mungkin mencapai puluhan ribu per tahun ini harus mengikuti jejak pendahulunya, yaitu harus berusaha keras compliance dengan IFRS setelah bekerja? Atau;
2. Apakah kalangan akademisi accounting kita di Indonesia (guru SMEA, dosen dan guru besar akuntansi) sudah siap mengganti: kurikulum, buku literature, syllabi dan bahan/alat ajar accounting lainnya?
3. Apakah para penyelenggara: accounting short-course, computer akuntansi, pendalaman profesi akuntansi (PPAk), penyelenggara USAP siap akan perubahan ini?

Michael Cangemi (President dan CEO dari FEI) mengatakan dalam tulisannya di “March issue “ mengatakan: “This means that all of the GAAP books you own, everything you learned in college and in your entire career will change”, semua buku mengenai GAAP yang anda miliki beserta segala sesuatu yang anda pelajari di sekolah dan career akan berubah.

“Major accounting schools - the Universities of Texas, Illinois and Wisconsin - will teach IFRS”, kata Larry Rittenberg, Ph.D., Ernst & Young professor, University of Wisconsin. Hampir semua  niversitas yang menyelenggarakan jurusan akuntansi di semua negara bagian amerika serikat telah memiliki kelas khusus IFRS, katanya, seperti di lansir oleh Financial executive online.

 
Dari sebuah blog yang sangat ramai, tetapi saya lupa mencatat nama blognya, saya membaca satu komentar yang lumayan menggelitik. Kalau tidak salah bunyinya seperti ini:

Mengubah accounting curriculum bukanlah pekerjaan mudah, menyangkut banyak aspect. Apakah anda pikir para decision maker curriculum yang nota bena-nya adalah para guru besar accounting yang sebentar lagi sudah akan memasuki masa retired (pensiun) akan bersedia menunda masa pensiunnya hingga universitas sepenuhnya IFRS ready? No way, bahkan mungkin mereka akan memilih mempercepat masa pensiunnya!

Ada salah satu komentator lain menanggapi seperti ini:

Saya seorang dosen akuntansi dari negara bagian Maryland, kebetulan saya seorang guru besar, setahu saya, kami para dosen bukanlah orang yang berpikiran sempit, kami siap menunda masa pensiun, begitu kami mendapat statement resmi dari bahwa FASB, SEC dan ICPA akan mengikuti IFRS.

Rupanya kalangan akademisi di United State masih ”wait and see” sikap resmi dari institusi yang mereka anggap sebagai kiblat. Tetapi setidaknya mereka siap untuk menunda masa pensiun untuk kepentingan generasi penerus mereka.

Bagaimana dengan bapak-ibu dosen, guru besar, para tetua akuntansi, the so-called ”embahnya auditor”, para penyelenggara Pendalaman Profesi Akuntansi, penyelenggara USAP, di Indonesia yang terhormat? Apakah ada yang belum sempat membaca ketentuan-ketentuan IFRS? Apakah anda pernah berpikiran untuk pelan-pelan mulai mengganti bahan ajar akuntansi kita menjadi berbasis IFRS-principles walaupun mungkin masih memakai GAAP-rules sedikit-sedikit?

By the way, kabar burungnya: sampai saat ujian CPA yang diselenggarakan periode tarakhir, ICPA sama sekali tidak mensyaratkan ”IFRS capability”. Hmmm…..Bagaimana dengan USAP 2008 yang akan di selenggarakan awal july ini? Bagi rekan-rekan yang kebetulan ikut, mohon saya diberikan bocorannya. Terimaksih sebelumnya.

Conclusions: Berpindah dari “GAAP” ke “International Financial Reporting Standards” akan berdampak besar terhadap cara berpikir kita dalam memahami akuntansi. Mulai dari university, accounting course hingga corporate level, hendaknya dilihat sebagai tantangan bersama bagi kita semua (para pegiat accounting dan para akademisi).

Seperti saya yang sudah sekian lama berusaha keras belajar berbahasa jawa (karena memang saya terlahir tidak berbahasa jawa) hingga saya benar-benar bisa, tetapi tiba-tiba sekarang saya harus belajar bahasa Sunda. Ya, sama-sama bahasa jawa memang, yang satu bahasa “Jawa” yang satunya lagi bahasa “Jawa Barat (sunda)”. Namun, mereka (bahasa Jawa vs bahasa Sunda) sangat berbeda dalam idioms, intonasi termasuk cara pengucapannya :). “It needs time”, itu sebenarnya yang ingin saya katakan

Next is last sub-topic……………

 
What is FASB and SEC Status Recently, Are They Ready?

According to CFO.com coverage of a Webcast hosted by the FASB earlier this week, the board is working to pare down the number of projects on its plate and then speed up those that remain in order to facilitate the Securities and Exchange Commission’s “acceleration of convergence” of the two sets of standards. Since the move to convergence began, emphasis has shifted from reconciling the standards to dropping U.S. GAAP altogether in favor of IFRS (Lora Bentley, ITBusinessEdge.com on June 26, 2008 at 1:58 pm).

Sementara June 27’ 2008 saya menerima berita dari google alert. AccountancyAge dalam “Date for IFRS in the US Two Years Away” melansir:

The Securities and Exchange Commission (SEC) has refused to put a date on the implementation of international accounting standards for at least two years. The Commission’s chief accountant Conrad Hewitt said that the SEC will propose a date for the go-ahead of IFRS for US public companies but that it would not be confirmed for two years as a commission examined whether key milestones had been met.

INVESTMENT IN ASSOCIATES

Definition

IFRS: An associate is an entity over which the investor has significant influence – that is, the power to participate in, but not control, an associate’s financial and operating policies. Participation by an investor in the entity’s financial and operating policies via representation on the entity’s board demonstrates significant influence. A 20% or more interest by an investor in an entity’s voting rights leads to a presumption of significant influence.

US GAAP: Similar to IFRS, although the term ‘equity investment’ rather than ‘associate’ is used. US GAAP does not include unincorporated entities, although these would generally be accounted for in a similar way.

Equity Method

IFRS: An investor accounts for an investment in an associate using the equity method. The investor presents its share of the associate’s post-tax profits and losses in the income statement. The investor recognizes in equity its share of changes in the associate’s equity that have not been recognized in the associate’s profit or loss.

The investor, on acquisition of the investment, accounts for the difference between the cost of the acquisition and investor’s share of fair value of the net identifiable assets as goodwill. The goodwill is included in the carrying amount of the investment. The investor’s investment in the associate is stated at cost, plus its share of post-acquisition profits or losses, plus its share of post-acquisition movements in reserves, less dividends received.

Losses that reduce the investment to below zero are applied against any long-term interests that, in substance, form part of the investor’s net investment in the associate – for example, preference shares and long-term receivables and loans. Losses recognized in excess of the investor’s investment in ordinary shares are applied to the other components in reverse order of priority in a winding up. Further losses are provided for as a liability only to the extent that the investor has incurred legal or constructive obligations to make payments on behalf of the associate.

Disclosure of information is required about the revenues, profits or losses, assets and liabilities of associates. Investments in associates held by venture capital organizations, mutual funds, unit trusts and similar entities including investment-linked insurance funds can be carried at fair value through profit or loss.

US GAAP: Similar to IFRS if the equity method is applied. In addition, an entity can elect to adopt the fair value option for any of its equity method investments. If elected, equity method investments are presented at fair value at each reporting period, with changes in fair value being reflected in the income statement.

Accounting Policies

IFRS: An investor’s financial statements are prepared using uniform accounting policies for like transactions and events; adjustments are made to the associate’s policies to conform to that of the investor.

US GAAP: The investor’s financial statements do not have to be adjusted if the associate follows an acceptable alternative US GAAP treatment, although it would be acceptable to do so.

Impairment

IFRS: If the investor has objective evidence of one of the indicators of impairment set out in IAS 39.59 for example, significant financial difficulty impairment is tested as prescribed under IAS 36, Impairment of Assets. The entire carrying amount of the investment is tested by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. In the estimation of future cash flows for value in use, the investor may use either: its share of future net cash flows expected to be generated by the investment (including the cash flows from its operations) together with the proceeds on ultimate disposal of the investment; or the cash flows expected to arise from dividends to be received from the associate together with the proceeds on ultimate disposal of the investment.

US GAAP: The impairment test under US GAAP is different to IFRS. Equity investments are considered impaired if the decline in value is considered to be other than temporary. As such, it is possible for the fair value of the equity method investment to be below its carrying amount, as long as that decline is temporary. If an other-than-temporary impairment is determined to exist, the investment is written down to fair value.

Investments in Joint Ventures

Definition

IFRS: A joint venture is defined as a contractual agreement whereby two or more parties undertake an economic activity that is subject to joint control. Joint control is the contractually agreed sharing of control of an economic activity. Unanimous consent of the parties sharing control is required.

US GAAP: A corporate joint venture is defined as a corporation owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

Types of Joint Venture

IFRS: Distinguishes between three types of joint venture:

1. jointly controlled entities – the arrangement is carried on through a separate entity (company or partnership);
2. jointly controlled operations – each venturer uses its own assets for a specific project;
3. jointly controlled assets – a project carried on with assets that are jointly owned.

US GAAP: Only refers to jointly controlled entities, where the arrangement is carried on through a separate corporate entity.

Jointly Controlled Entities

IFRS: Either the proportionate consolidation method or the equity method is allowed. Proportionate consolidation requires the venturer’s share of the assets, liabilities, income and expenses to be either combined on a line-by-line basis with similar items in the venturer’s financial statements, or reported as separate line items in the venturer’s financial statements.

US GAAP: Prior to determining the accounting model, an entity first assesses whether the joint venture is a VIE. If the joint venture is a VIE, the accounting model discussed in the above section, “Special purpose entities”, is applied. If the joint venture is not a VIE, venturers apply the equity method to recognize the investment in a jointly controlled entity. Proportionate consolidation is generally not permitted except for unincorporated entities operating in certain industries.

Contributions to a Jointly Controlled Entity

IFRS: A venturer that contributes non-monetary assets, such as shares or non-current assets, to a jointly controlled entity in exchange for an equity interest in the jointly controlled entity recognises in its consolidated income statement the portion of the gain or loss attributable to the equity interests of the other venturers, except when:

1. the significant risks and rewards of the contributed assets have not been transferred to the jointly controlled entity;
2. the gain or loss on the assets contributed cannot be measured reliably; or
3. the contribution transaction lacks commercial substance.

US GAAP: As a general rule, an investor (venturer) records its contributions to a joint venture at cost (i.e.: the amount of cash contributed and the book value of other non-monetary assets contributed). Sometimes, appreciated non-cash assets are contributed to a newly formed joint venture in exchange for an equity interest when others have invested cash or other ‘hard assets’. It is sometimes argued that the investor contributing appreciated non-cash assets has effectively realized part of the appreciation as a result of its interest in the venture to which others have contributed cash and that immediate recognition of a gain would be appropriate. Practice and existing literature vary in this area. As a result, the specific facts and circumstances affect gain recognition and require careful analysis.

Jointly Controlled Operations

IFRS: Requirements are similar to jointly controlled entities without an incorporated structure. A venturer recognises in its financial statements:

1. the assets that it controls;
2. the liabilities it incurs;
3. the expenses it incurs;
4. its share of income from the sale of goods or services by the joint venture.

US GAAP: Equity accounting is appropriate for investments in unincorporated joint ventures. The investor’s pro-rata share of assets, liabilities, revenues and expenses are included in their financial statements in specific cases where the investor owns an undivided interest in each asset of a non-corporate joint venture.

Jointly Controlled Assets

IFRS: A venturer accounts for its share of the jointly controlled assets, liabilities, income and expenses, and any liabilities and expenses it has incurred.

US GAAP: Not specified. However, proportionate consolidation is used in certain industries to recognize investments in jointly controlled assets.(REFERENCES: IFRS: IAS 1, IAS 28, IAS 31, SIC-13, IAS 36, IAS 39. US GAAP: APB 18, FAS 153, FIN 35).

CONSOLIDATED FINANCIAL STATEMENT

Preparation

IFRS: Parent entities prepare consolidated financial statements that include all subsidiaries. An exemption applies to a parent:

1. that is itself wholly owned or if the owners of the minority interests have been informed about and do not object to the parent not presenting consolidated financial statements;
2. the parent’s securities are not publicly traded nor is it in the process of issuing securities in public securities markets; and
3. the immediate or ultimate parent publishes consolidated financial statements that comply with IFRS.

US GAAP: There is no exemption for general purpose financial statements. Consolidated financial statements are presumed to be more meaningful and are required for SEC registrants. Specific rules apply for certain industries.

Consolidation Model and Subsidiaries

The definition of a subsidiary, for the purpose of consolidation, is an important distinction between the two frameworks.

IFRS: Focuses on the concept of control in determining whether a parent/subsidiary relationship exists. Control is the parent’s ability to govern the financial and operating policies of a subsidiary to obtain benefits. Control is presumed to exist when a parent owns, directly or indirectly through subsidiaries, more than one half of an entity’s voting power. Control also exists when a parent owns half or less of the voting power but has legal or contractual rights to control the majority of the entity’s voting power or board of directors. A parent could have control over an entity in circumstances where it holds less than 50% of the voting rights of an entity and no legal or contractual rights by which to control the majority of the entity’s voting power or board of directors (de facto control). Currently exercisable potential voting rights should also be considered to determine whether control exists. Entities acquired (disposed of) are included in (excluded from) consolidation from the date on which control passes.

US GAAP: Uses a bipolar consolidation model. All consolidation decisions are evaluated first under the variable interest entity (VIE) model. If the entity is a VIE, management should follow the US GAAP guidance below, under ‘Special purpose entities’. The second model looks to voting interest. Under this model, control can be direct or indirect and may exist with less than 50% ownership. ‘Effective control’, which is a similar notion to de facto control under IFRS, is very rare if ever employed in practice under US GAAP. Accordingly, there could be situations in which an entity is consolidated under IFRS based on the notion of de facto control. However, it would not be consolidated under US GAAP under the concept of effective control.

Special Purpose Entities

IFRS: Special purpose entities (SPEs) are consolidated where the substance of the relationship indicates that an entity controls the SPE. Control may arise through the predetermination of the activities of the SPE (operating on ‘autopilot’) or otherwise. Indicators of control arise where:

1. the SPE conducts its activities on behalf of the entity;
2. the entity has the decision-making power to obtain the majority of the benefits of the SPE;
3. the entity has other rights to obtain the majority of the benefits of the SPE; or
4. the entity has the majority of the residual or ownership risks of the SPE or its assets.

Post-employment benefit plans or other long-term employee benefit plans to which IAS 19, Employee Benefits, applies are excluded from this requirement.

US GAAP: The consolidation of an SPE is required by its primary beneficiary when the SPE meets the definition of a VIE and the primary beneficiary has a variable interest in the entity that will cause it to absorb a majority of the VIE’s expected losses, receive a majority of the VIE’s expected residual returns, or both. There are several scope exceptions to this rule (such as pension, post-retirement or post-employment plans). Specific criteria also permit the transfer of financial assets to an SPE that is not consolidated by the transferor. The SPE should be a qualifying SPE (QSPE, as defined),
and the assets should be financial assets (as defined).

Uniform Accounting Policies

IFRS: Consolidated financial statements are prepared using uniform accounting policies for like transactions and events in similar circumstances for all of the entities in a group.

US GAAP: Similar to IFRS, with certain exceptions. Consolidated financial statements are prepared using uniform accounting policies for all of the entities in a group except when a subsidiary has specialized industry accounting principles. Retention of the specialized accounting policy in consolidation is permitted in such cases.

Reporting Periods

IFRS: The consolidated financial statements of the parent and the subsidiary are usually drawn up at the same reporting date. However, the consolidation of subsidiary accounts can be drawn up at a different reporting date provided the difference between the reporting dates is no more than three months. Adjustments are made for significant transactions that occur in the gap period.

US GAAP: Similar to IFRS, except that adjustments are generally not made for transactions that occur in the gap period (REFERENCES: IFRS: IAS 27, SIC-12, IFRS 5. US GAAP: ARB 51, FAS 94, FAS 144, SAB 51, SAB 84, EITF 96-16, FIN 46).