Issue link: http://www.e-digitaleditions.com/i/57464
Headlines New Center on Financial Reporting Ernst & Young LLP has committed $1 million to the Ernst & Young Academic Resource Center, a collaboration between E&Y professionals and university faculty that focuses on International Financial Reporting Standards (IFRS). Launching this September, the Center will develop curricula and learning materials that will help faculty teach U.S. students how to make a successful conversion from the generally accepted account- ing principles (GAAP) of the U.S. to the international standards. Although a date has not been set to adopt IFRS in the U.S., most European Union countries are already required to use IFRS. The SEC has approved a change in its rules so that foreign private issuers using IFRS are no longer required to reconcile their financial statements with GAAP. According to "US GAAP vs. IFRS: The Basics," available online from Ernst & Young, the two sys- tems share many similarities, in that their financial statements include a balance sheet, income statement, statement of cash flow, and accom- panying notes. The most significant differences revolve around the finan- cial periods required, the layouts of the balance sheets and income state- ments, the presentation of current versus noncurrent debt in the bal- ance sheet, the classification of vari- ous items on the income statement, changes in equity, and disclosure of performance measures. In a May 2008 report, the Trea- sury Department's Advisory Com- mittee on the Auditing Profession specifically called on private industry, educators, and regulators to work 8 BizEd SEPTEMBER/OCTOBER 2008 together to implement curricula and content for accounting students that continuously evolve to meet the needs of the auditing profession. "The changes that are now clearly on the horizon around Interna- tional Financial Reporting Standards will create a seismic shift in the knowledge and content that U.S. students will need to learn in the coming years," says Douglas Shack- leford, Meade A. Willis Professor of Accounting at Kenan-Flagler Business School, University of North Carolina, Chapel Hill. For more information, visit www.ey.com. Bentley Receives EFMD Accreditation Bentley College in Waltham, Massachusetts, has earned accreditation from the European Foundation for Manage- ment Education's European Quality Improvement System (EQUIS). One other American school, the University of Washington in Seattle, currently holds that designation as well. Both Bentley and UW also are accredited by AACSB International. Pursuing European accredita- tion fit well with the school's overall international strategy, says Michael J. Page, Bentley's new dean of business and dean of the McCallum Gradu- ate School. "We expect that EQUIS accreditation will enhance our ability to attract high-quality faculty and stu- dents," he says. "It also will enhance our goal of establishing additional partnership arrangements with busi- ness schools throughout the world." As a U.S. institution seeking accreditation from a European orga- nization, Page says, Bentley's primary obstacles were "presenting our inter- national faculty, research, programs, and students in a manner consistent with our agenda while at the same time satisfying EQUIS standards and criteria." Other schools seeking EQUIS accreditation need to serious- ly examine the nature and scope of their international activities, he says. "EQUIS accreditation requires much more than international exchanges at a student and faculty level. Rather, the school needs to have a comprehensive engagement with international stakeholders that is developed from a solid international strategy and agenda." The AICPA Diversifies In an effort to promote diversity within the accounting profession, the American Institute of Certified Public Accoun- tants recently held a workshop titled "Lead the Way, Make a Difference, Become a CPA." Running the ses- sions were professionals with an array of expertise in public account- ing, private industry, and academia. The AICPA has since received more than 360 minority accounting schol- arship applications.