1. Middle Tennessee State University John West & Sara Becher June 19, 2013 A Day of Acronyms with D&T

2. Copyright © 2011 Deloitte Development LLC. All rights reserved. 2 This training presentation is provided solely for educational purposes. In developing and presenting this course, Deloitte is not providing accounting, business, financial, investment, legal, tax, or other professional advice or services. This training presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decisions or actions that may affect your business or to provide assurance that any decision or action will be supported by your auditors and regulators. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be liable for any claims, liabilities, or expenses sustained by any person who relies on this course for such purposes. About Deloitte As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

3. 3 Copyright © 2011 Deloitte Development LLC. All rights reserved. Agenda SectionSession IInternational Financial Reporting Standards (IFRS) IIA Day as a CPA 3 Copyright © 2011 Deloitte Development LLC. All rights reserved.

4. 4 I. International Financial Reporting Standards “IFRS”

5. 5 Copyright © 2011 Deloitte Development LLC. All rights reserved. What is IFRS?

6. 6 Copyright © 2011 Deloitte Development LLC. All rights reserved. What is IFRS? International Financial Reporting Standards ("IFRS") is a set of established accounting standards that is rapidly gaining worldwide acceptance Standards are promulgated by the International Accounting Standards Board (“IASB”) –IASB includes representatives from major countries, including the U.S. Generally more focused on objectives and principles and less reliant on detailed rules and interpretations than U.S. GAAP –IFRS currently consists of a single volume of approximately 40 standards and 25 interpretations –Standards include International Accounting Standards and IFRSs –Interpretations include SICs and IFRICs

7. 7 Copyright © 2011 Deloitte Development LLC. All rights reserved. Challenges — Putting “Principles” Into Action Transaction analysis New need to document processes Economic substance is paramount — and often involves considerations beyond accounting Accounting research White papers will be needed to document the assessment Increased sensitivity to diversity in practice Decision making Review process may include non-accounting professionals Increased emphasis on the appropriateness of assumptions Increased emphasis on disclosure Transaction analysis Accounting researchDecision making Transaction analysis Accounting research Decision making U.S. GAAP IFRS

8. 8 Copyright © 2011 Deloitte Development LLC. All rights reserved. Global use — Used in over 100 countries and by more than 40% of the Global Fortune 500 Current: European Union (EU) countries, Hong Kong, Australia, New Zealand, many Middle East and South American countries including Chile and Brazil and Japan early adopters Future: Argentina, Canada, India and South Korea (2011); Mexico (2012), Proposed: U.S. mandatory (2015/2016) may provide early adoption, Japan mandatory (2015) — Based on Regulatory Roadmaps Adopted or will adoptDeveloping plans to adopt No plans or unknown * Early adopters Global Adoption Map for Public Companies

9. 9 SEC Staff directed to carry out a “Work Plan”, which will assist in evaluating the impact of IFRS to support SEC’s decision on an IFRS mandate Work Plan does not provide specific timing for any IFRS mandate. –Timeline for conversion indicated by the SEC is no earlier than 2015/2016 (which dates would reflect a January 1, 2013/2014 transition date). –Certain convergence activities likely due prior to implementation. SEC issued a Staff Paper on May 26, 2011 explored a possible method of incorporating IFRS for U.S. issuers. The possible method combines features of convergence and endorsement: ̶ In practice, preserving U.S. GAAP and IFRS while the standards completely converge over a multi- year period (e.g. 5 to 7 years). ̶ FASB would continue to be involved in the IASB’s process for developing IFRS and SEC to monitor standard setting ̶ Comments on the Staff Paper are due by July 31, 2011 and, further, a transition plan would be developed to incorporate existing IFRS into U.S. GAAP. Further rulemaking will be necessary to implement any mandatory adoption of IFRS. IASB and FASB have again reaffirmed their MoU on “converging” U.S. GAAP and IFRS. Plan A - IFRS Adoption in the United States

10. 10 Copyright © 2011 Deloitte Development LLC. All rights reserved. Plan B - FASB/IASB Convergence Overview of Convergence Convergence does not necessarily result in identical standards; focus is on converging general principles, not every detail Ongoing convergence is limited to a defined group of projects Several of the most time-consuming areas of IFRS conversion deal with areas not subject to convergence “Convergence” will not result in a transition to IFRS by U.S. issuers in and of itself but will likely have a significant impact on U.S. GAAP and all U.S. registrants

11. 11 Copyright © 2011 Deloitte Development LLC. All rights reserved. Major IASB/FASB Projects Joint Memorandum of Understanding (MoU) Projects Financial instruments (priority) Revenue recognition (priority) Fair value measurement (priority) Financial statement presentation Presentation of other comprehensive income (priority) Discontinued operations Leases (priority) Consolidation (priority) Derecognition Financial instruments with characteristics of equity Conceptual framework – Reporting entity Other Joint Projects Consolidation – Investment companies Insurance contracts Emissions trading schemes Effective dates and transition IASB Only Projects Joint ventures Disclosures – Derecognized assets and other off-balance sheet risks Income taxes (limited scope) Provisions Post-employment benefits – defined benefit plans Rate-regulated activities Management commentary

12. 12 Copyright © 2011 Deloitte Development LLC. All rights reserved. II. A Day as a CPA

13. 13 Copyright © 2011 Deloitte Development LLC. All rights reserved. A Day as a CPA How did we get here? What is Public Accounting? –Tax vs. Audit vs. Consulting –Private vs. Public Fact vs. Fiction –Hours –Travel –Introvert / Extrovert –Public / Private How do I get a job???? –Knowing the landscape –Getting connected –Enhancing your qualities

14. Copyright © 2011 Deloitte Development LLC. All rights reserved. 14 This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this presentation.