...GAAP, IFRS Parting Ways: Full U.S. adoption of IFRS seems unlikely to happen any time soon. As convergence in standard-setting projects for financial instruments and insurance has now ceased, significant disparity will persist between U.S. GAAP and IFRS. Differences in application and financial products meant that a one-size-fits-all approach to accounting for financial instruments is too problematic. FASB intends to fine tune the existing U.S. insurance standards rather than advance a joint insurance project. Revenue Recognition Standard Agreed: A new FASB revenue recognition standard was issued on May 28, 2014, and is nearly identical to a new IFRS standard FRS 15 issued on the same date. U.S. public companies using GAAP will be required to apply the standard for annual reporting periods beginning after Dec. 15, 2016, with private companies after Dec. 15, 2017. Timing Impacts Margins, Not Cash Flows: Fitch focuses on several credit metrics when determining a rating, including cash flow...
