More details on the introduction of International Financial Reporting Standards (IFRS) to the CPA Exam in 2011 have just been released! Keep in mind this is just a guideline on how the new content will most likely be introduced. These updates have been presented by the AICPA using language such as, "students may be asked" and "another possible topic will be" so the best approach to prepare yourself for these changes is to familiarize yourself with the topics listed below or enroll in a CPA review course that will provide you with updated materials. Due to the uncertainty of how the potential use of IFRS by U.S. Companies will affect U.S. taxes, no questions are currently scheduled for REG. However, IFRS is subject to be introduced to this section in the future.
We've listed the various topics that will most likely be tested in each section:
- The differences between financial statements that are prepared using GAAP standards vs. those that are prepared using IFRS.
- How the first-time integration of IFRS standards will affect financial reporting, presentation, and disclosures.
- The effects of globalization on the business environment.
- Candidates may be asked to explain the underlying economic substance of transactions.
- The role of the International Auditing and Assurance Board (IAASB) in establishing International Standards on Auditing (ISAs).
- The differences between ISAs and U.S. Auditing Standards.
- The role of International Ethics Standards Board for Accountants (IESBA) in establishing requirements for the Code of Ethics for Professional Accountants of the International Federation of Accountants (IFAC).
- An understanding of AICPA Codification of Statements on Auditing Standards, AU Appendix B, Analysis of International Standards on Auditing.
If you would like more information on the comprehensive changes to the CPA Exam in 2011, please read our recent blog post here.