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An examination of United States Certified Public Accountants' need for IFRS-related continuing professional education.

INTRODUCTION

In August 2008, the United States (U.S.) Securities and Exchange Commission (SEC) approved for public comment a proposed timeline, titled Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers (SEC, 2008b). The authors of the timeline called for the decision on whether to require International Financial Reporting Standards (IFRS) for U.S. issuers to be made in 2011 (Griffith, 2008; SEC, 2008b). According to the timeline revised by the SEC in February 2010 and still in place when data for this study were collected in May 2010, if the decision in 2011 had been to begin requiring IFRS, a staged transition would begin in 2015 (Defelice and Lamoreaux, 2010; SEC, 2008b).

The decision on requiring IFRS for U.S. issuers has been delayed indefinitely. The SEC's latest strategic plan includes considering whether a single set of high-quality global accounting standards is an achievable goal, but does not specifically mention IFRS (SEC, 2014). However, in the months following the release of the timeline when the data for this study were gathered, it was widely believed that the U.S. would adopt IFRS (Dzinkowski, 2008; PricewaterhouseCoopers, 2007; Smith, 2008). Several U.S. companies started preparation for conversion to IFRS expecting savings from following global standards (PricewaterhouseCoopers, 2007).

Although what form the IFRS conversion will take is unknown, consensus exists that IFRS will affect accounting in the U.S. in some way (Dzinkowski, 2008; PricewaterhouseCoopers, 2007; Smith, 2008). In discussions about the transition within the U.S., there is concern about the lack of IFRS experience and knowledge among accountants (Sharf, 2008). According to an American Institute of CPAs (AICPA) member survey conducted in 2009, 66% of respondents had no knowledge or only basic knowledge of IFRS. Some knowledge reported by 24%. Only 6% of respondents reported advanced or expert knowledge (AICPA, 2009).

The need for IFRS knowledge is not limited to large international accounting firms (Deane & Heilman, 2009) nor is it dependent on a complete adoption of IFRS by the SEC. In 2008, the AICPA recognized the International Accounting Standards Board (IASB) as an accounting standards setter, paving the way for U.S. private companies to adopt IFRS. Many U.S. subsidiaries of foreign-owned companies and U.S.-based companies with foreign subsidiaries are changing to IFRS to benefit from having all entities report under one common international accounting system (Deane & Heilman, 2009). Already, two-thirds of U.S. investors own securities issued by foreign companies reporting based on IFRS (SEC, 2008a).

Without the knowledge required to effectively transition to IFRS, the quality and timeliness of financial reporting will be adversely affected and the competitiveness of U. S. businesses in the global market place may be hindered (Lindorff, 2008; Soderstrom & Sun, 2007; Tokar, 2005; Williams & Carcello, 2007). The benefits expected from using IFRS, which include increased comparability for investment analysis, improved efficiency of capital allocation, decreased cost of capital, and elimination of barriers associated with costly reporting and reconciliation requirements for multinational firms, will be diminished if the accounting profession in the U.S. is not ready for the change (PricewaterhouseCoopers, 2007).

CPAs must acquire knowledge about IFRS to assist with a transition to international standards by companies in the U. S. For the accounting profession to be prepared, a need exists for the SEC, the AICPA, and those organizations that provide educational services to CPAs to develop focused agendas that will deliver the needed information to segmented target audiences (Cabrera, 2008). Such a coordinated reeducation effort will be necessary to ensure an adequate number of accountants are properly trained in IFRS. Examining the relationship between IFRS related continuing professional education (CPE) needs and CPAs' professional characteristics provides information helpful in targeting IFRS education efforts to subgroups within the profession.

As the accounting profession prepares for the likely transition to IFRS, an opportunity exists to examine the concepts of agency theory and the sociology of professions during a time of change. If the accounting profession exerts control over members in the ways predicted by agency theory and the sociology of professions, distinct CPE preferences will be noted among peer groups within the profession (Finlay-Parker, 1996; Jamal, 1996; Loughry & Elms, 2006). The purpose of this study was to examine how IFRS-related CPE needs differ based on CPAs' professional characteristics. CPE needs related to implementing IFRS and professional characteristics were measured using a researcher-developed survey. Participants were asked to rate their need for potential IFRS related CPE topics. Based on the literature review, the professional characteristics measured included respondents' education level (Hope, 1994), prior IFRS training and experience (Meyer, 2007), size of employer (Hope, 1994), and years of experience (Fama & Jensen, 1998).

LITERATURE REVIEW

Agency theory can be applied to accounting from the perspective of professional accountants as agents for clients and employers. This principal-professional relationship differs from other principal-agent relationships because it is characterized by knowledge asymmetry (Sharma, 1997). Although principal-professional exchanges share characteristics common in other agency relationships, the nature of professional work leads to some differences. First, in principal-professional exchanges the division of labor is also a division of knowledge. This knowledge asymmetry favoring professional agents undermines the ability of principals to design and enforce agreements based on a reliance on property rights fundamental in agency theory (Sharma, 1997). Second, professionals, as part of a larger professional community, are not as autonomous and as prone to maximizing their own interest as is commonly assumed in agency theory (Loughry & Elms, 2006; Sharma, 1997). The third difference identified is that the client must work with the professional to produce an intangible service product (Sharma, 1997).

Certain modifications from the literature of the sociology of professions are required when applying agency theory to professionals (Almer, Higgs, & Hooks, 2005). Agency theory depicts individuals as wealth maximizers and typically considers only economic utility (Almer, Higgs, & Hooks, 2005; Jensen & Meckling, 1995). However, professionals may derive noneconomic utility from serving the public good, the prestige of being a professional, and control of the work environment (Almer, Higgs, & Hooks, 2005; Etzioni, 1988; Larson, 1977).

Although professionals typically control their own work, the profession's social structure exerts influence and control. In fact, the literature presents the profession of which one is a member as a very powerful force (Almer, Higgs, & Hooks, 2005; Covaleski et al., 1998; Fogarty, 2000). Although the profession may not directly supervise the work of the individual, a professional's work is done within the larger context of a community of peers. This community provides oversight, which may include professional standards, a code of ethics, licensure, CPE requirements, and disciplinary actions (Almer, Higgs, & Hooks, 2005). Forms of governance found to affect professionals include education, socialization, and intrinsic motivation (Loughry & Elms, 2006).

Beyond being a profession, accounting is also classified as a knowledge intensive field. Knowledge does not exist on its own, but is dependent on social recognition and depends on significant others for validation (Alvesson, 2001). This validation involves being perceived as having links with bodies that confirm one's knowledge intensiveness, forming and maintaining specific ties with clients and consumers, and managing the interactions related to carrying out the work in socially and politically fine-tuned ways. The idea of knowledge intensiveness requiring validation from significant others supports the concept of the influence and control professions exercise over professionals.

Dubin (1990) used the term "professional obsolescence" to describe the way that changes in the work environment mean that existing competence is no longer sufficient for effective performance. Unless a profession maintains up-to-date knowledge, a gap may occur between what the public expects and what the profession is able to deliver. The International Federation of Accountants (IFAC) has taken the position that the requirement to maintain and develop professional competence throughout an individual's career is a fundamental characteristic of a professional accountant (Berg, 2007). The maintenance of professional competence is a fundamental ethical obligation and one should not be considered a professional accountant unless he or she is committed to maintaining competence. "The profession has a responsibility to the public, and to professional accountants themselves, to ensure that professional accountants continue to develop and maintain the competence demanded by their professional roles and the users of their services" (Berg, 2007, p. 319).

The need for the accounting profession to maintain competence has not diminished in recent years. A 2014 survey of leaders in the accounting profession found that the risk of competitive irrelevancy and obsolescence is one of the top ten concerns for the profession (Hood, 2014). The AICPA has identified improved learning tools and resources as necessary for enhancing audit quality. Specifically, enhanced curricula and educational courses based on areas of concern uncovered in peer reviews are needed (AICPA, 2014). Within the context of change, the need to up-date one's technical knowledge can be pronounced. In a survey of Australian accountants, 40 percent of respondents rated technical knowledge, or the lack thereof, as a difficult issue in Australia's recent switch to IFRS (Morris, Gray, Pickering, & Aisbitt, 2014). As IFRS becomes more a part of accounting in the U.S., training will be needed to avoid similar difficulties.

There are four reasons a profession requires CPE: maintenance and modernization, preparation for change, induction into new responsibilities, and refreshing (Houle, 1980). Houle (1980, p. 119) wrote, "Many professionals are stirred to maintain or strengthen their performance by a realization of the consequences of a possible decline in practice or a boycott. The dramatic fate of some incompetent or unethical professionals is to lose their licenses and therefore their right to practice". There are also less severe ways for professionals to be reprimanded for failing to maintain currency. "If a professional loses the confidence of colleagues, they are likely to withdraw from association with him or her, deny access to facilities needed for practice, or fail to refer clients. The suspect practitioner is thus gradually or speedily cut off from the right to work" (Houle 1980, p. 119). Providers of CPE include autonomous groups (a few members of the profession assemble), associations, professional schools, universities, employment settings, and independent providers (Houle, 1980).

Earlier research focused on CPE needs of particular groups of accountants (Finlay Parker, 1996; Jamal, 1996). Finlay-Parker (1996) identified the CPE needs of Certified Management Accountants (CMAs) in higher education. Some differences in the degree of importance for different topics were noted for the demographic variables years in the profession and job responsibilities. Suggestions for further research included the idea that planning for professional development could be broken down by groups. When there is specialization, the needs of special interest groups within a profession could be quite different. A similar study attempted to identify the continuing education needs of Canadian chartered accountants who work in business organizations (Jamal, 1996). Accordingly, the research question for this study is

RQ: How do perceived IFRS related CPE needs of CPAs differ based on CPAs' professional characteristics?

Hope (1994) studied the modes of learning of CPAs using Houle's three modes of learning (inquiry, instruction, and reinforcement) as a basis for identification. The identified modes of learning were compared with selected demographic variables using a survey of Kansas CPAs. Demographic variables related to the preferred mode of inquiry included size of the firm and extent of formal education. Based on these findings two hypotheses were developed:

H1: Perceived IFRS related CPE needs differ based on size of employer.

H2: Perceived IFRS related CPE needs differ based on education level.

More recently, Meyer (2007) examined CPAs' perceptions of CPE. Meyer surveyed the membership of the Louisiana Society of Certified Public Accountants (LCPA) on the value of and attitudes toward CPE. Results indicated that CPAs believe that CPE has value and have a positive attitude toward CPE. The CPE needs for CPAs who perceived themselves as specialists or experts differed from the CPE needs for CPAs who did not perceive themselves as experts in a particular area of accounting. Based on this finding hypotheses 3 and 4 were developed:

H3: Perceived IFRS related CPE needs differ based on prior IFRS training.

H4: Perceived IFRS related CPE needs differ based on prior IFRS experience.

Public accountants provide services where one act of incompetence can cause large damage to a client (Fama & Jensen, 1998). Therefore, certification and reputation are important to clients. Even in large professional service organizations, services are rendered in individual cases by one or a few professionals allowing the responsibility for variation in the quality of service to be easily traced to individual agents. The market for services imposes unlimited liability on the human capital of professional agents. The professionals have an incentive to purchase monitoring and consulting to help limit losses to the value of their human capital (Fama & Jensen, 1998). In relation to the study, this predicts that older CPAs will be less likely than their younger peers to invest in something new because there is not as much risk from loss of human capital for a professional close to retirement. Hypothesis 5 is

H5: Perceived IFRS related CPE needs differ based on years of experience.

RESEARCH METHOD

Data was collected using an on-line survey. The population included all CPAs in Louisiana. The sampling frame included members of the Louisiana Society of Certified Public Accountants (LCPA). Approximately 10,000 CPAs exist in Louisiana (R. Bush, professional communication, October 2, 2009). Based on the estimated population size, 370 completed surveys were needed to generalize the results to the population at a 95% confidence level. An email notice including the link to the on-line survey was sent to each member of the LCPA with the objective of obtaining completed surveys from 370 or more members. One week after initial notification, an e-mail reminder was sent followed by a second reminder notice after another week had passed. Data were collected in May 2010.

Before administration, the survey was reviewed by a panel of experts consisting of six Louisiana State University at Alexandria business faculty members and 19 CPAs serving on the Continuing Professional Education committee of the LCPA. The panel evaluated the survey for clarity and content validity. All suggestions were considered and incorporated into final instrument revisions.

To ensure the on-line survey administration process would function properly and to measure the reliability of the researcher developed survey, a pilot study was conducted. A convenience sample of five CPAs completed the survey. No difficulties with the on-line process were reported. Cronbach's alpha was calculated for questions related to need for IFRS related CPE topics. The need items demonstrated internal consistency, as indicated by a reliability coefficient of .984.

Survey Questionnaire and Operational Definition of Variables

The objective of the study was to examine how IFRS related CPE needs differ based on CPAs' professional characteristics. Based on the objective, the study involved examining two constructs: IFRS related CPE needs of CPAs and CPAs' professional characteristics.

The construct, IFRS related CPE needs of CPAs, was defined as topics that CPAs believe would be necessary or helpful in coping with the change to IFRS in their practices or job settings. The list of topics was based on a review of courses being offered in the U. S. and Canada. By reviewing offerings in Canada, which had accounting systems similar to that of the U.S. and was in the process of implementing IFRS, a more complete listing was compiled than would have been possible by limiting the search to the U.S. (Bernhut, 2008). Topics were grouped into categories to limit the list to a manageable number. A search for topics was conducted in January 2010 by reviewing the websites of the AICPA, the Big 4 accounting firms, The Canadian Institute of Chartered Accountants, Acumen Information Services, and IASeminars, an educational firm that has partnered with the AICPA to provide IFRS related training (AICPA, 2008; Bernhut, 2008). An Internet search was also conducted using the search term IFRS CPE. In addition to the websites already identified, the Internet search led to courses offered by the University of North Carolina Charlotte, Kaplan Schweser, Trainup.com, and ILX Group.

The search for topics yielded 115 courses. Course descriptions were analyzed to determine course content. The topics were sorted into categories with duplicate and related topics grouped together. Eighteen categories were identified. The rating scale was a Likert-type scale with options ranging from not needed at all to urgently needed. Because the data were not normally distributed, the Likert-type scale responses were treated as ordinal.

The construct, professional characteristics of CPAs, was defined as factors that represent membership within a subgroup of the accounting profession. The factors were respondents' education level (Hope, 1994), prior IFRS training and experience (Meyer, 2007), size of employer (Hope, 1994), and years of experience (Fama & Jensen, 1998).

To measure the variables, the survey included questions about respondents' professional characteristics. Data gathered from survey items were treated as a nominal level of measurement. The variables included in the construct were defined as follows.

Education level refers to the highest level of formal education completed. Currently, Louisiana requires a baccalaureate degree and 150 semester credit hours for initial licensure. Prior to 1997, only a baccalaureate degree was required (State Board of Certified Public Accountants of Louisiana, 2007). Therefore, the applicable education levels were bachelor's degree, bachelor's degree with at least 150 hours, master's degree, and doctorate degree.

Prior IFRS training and experience is the degree to which a CPA has previously worked on projects completed in accordance with IFRS. Size of employer was defined as the size of the organization in which the respondent works based on the number of accounting professionals in the organization. Years of experience was defined as the number of years the respondent has practiced as a CPA. The categories were based on a previous study of CPAs in Louisiana (Meyer, 2007).

STUDY LIMITATIONS

The self-selection of survey respondents is a limitation of the study. Survey results were reviewed to determine whether a wide range of demographic variables and specializations were represented among respondents.

Another limitation was the designation of the sampling frame as members of the LCPA. The decision to limit the sample to members of the LCPA was made due to the accessibility of the population. Generalizability of results to accountants in other states and nations may be limited. However, previous studies (Hope, 1994; Meyer, 2007) used CPAs in a single state as representative of all CPAs in the U. S. Therefore, the findings of the study do have value beyond Louisiana.

STATISTICAL ANALYSIS AND RESULTS

Four hundred forty-one individuals participated in the study. Of those participants, five did not answer any questions related to need for IFRS related CPE and were deleted from the analyses. Some participants skipped some survey questions. The responses with some skipped questions were retained in the data set, leaving 436 responses.

Table 1 shows descriptive statistics for the participants' professional characteristics. A wide range of demographic variables and specializations was present among respondents. Table 2 shows the perceived IFRS-related CPE needs.

Examining the skewness and kurtosis values for the 18 potential CPE needs revealed that none of the variables had a skewness or kurtosis value exceeding 1 in absolute value, indicating approximate normality. However, Shapiro-Wilkes tests of normality were also performed, and all 18 tests revealed statistically significant basis for rejecting the null hypothesis of normality (p < .001). The statistical significance may be due, in part, to the large sample size in the study. Nevertheless, nonparametric analyses were determined to be most appropriate for addressing the research question. Therefore, chi-square tests of independence were performed between each of the 7 professional characteristics and the 18 CPE needs. Chi-square tests of independence were performed using frequencies in each cell. The data tables present percentages for informational purposes.

The first hypothesis was perceived IFRS related CPE needs of CPAs differ based on CPAs' size of employer (Hope, 1994). Crosstabulations are shown in Tables 3 and 4. There were statistically significant differences on 9 of the 18 CPE needs. The finding of statistically significant differences supported the hypothesis. In all cases, participants who were from small organizations (those with 1 to 5 accountants) were more likely to say that training in a particular CPE area was not needed than all the other groups.

The second hypothesis was perceived IFRS related CPE needs of CPAs differ based on education level (Hope, 1994). Crosstabulations of education level with ratings of the 18 CPE needs are shown in Tables 5 and 6, along with results from the chi-square tests. None of the chi-square tests performed based on differences in education level were statistically significant. The hypothesis was not supported.

The third hypothesis was perceived IFRS related CPE needs of CPAs differ based on prior IFRS training (Meyer, 2007). The crosstabulations involving differences based on prior IFRS training are shown in Tables 7 and 8. Because there were only four participants who stated they had more than 40 hours of IFRS training, the top two categories were combined for the chi-square analyses. Differences between the three training groups were statistically significant for 16 of the 18 CPE needs. The hypothesis was supported. Participants with no IFRS training perceived less of a need for training than participants with IFRS training did. For all 16 CPE needs for which there was a statistically significant difference between the groups, a higher percentage of those with no IFRS training perceived no need for each area than those with eight or fewer hours of training or those with more than eight hours of training.

The fourth hypothesis was perceived IFRS related CPE needs of CPAs differ based on prior IFRS experience (Meyer, 2007). Crosstabulation and chi-square results for prior IFRS experience are shown in Tables 9 and 10. Because only four participants stated the majority of their work was IFRS based, the top two categories were combined for the chi-square analyses. Statistically significant differences among the groups' needs for 16 of the CPE topics supported the hypothesis. Specifically, those who had never worked on an IFRS project were more likely to respond that training related to each of the 16 CPE areas was not needed than those who had worked on some IFRS projects or for whom the majority of projects were IFRS projects.

The fifth hypothesis was perceived IFRS related CPE needs of CPAs differ based on years of experience (Fama & Jensen, 1998). Crosstabulations of years of experience with CPE needs are shown in Tables 11 and 12. There were statistically significant differences for 7 of the 18 CPE need areas. Statistically significant differences on the seven topics supported the hypothesis. For IFRS basics and first-time adoption, and IFRS accounting for leases, participants with the least experience (1 to 5 years) were more likely to see an urgent need for CPE training. For the other 5 topics with significant differences, participants with more than 20 years of experience were the most likely group to feel the CPE was not needed.

IMPLICATIONS

Need for some CPE topics does differ based on prior IFRS training, prior IFRS experience, size of employer, and years of experience. These findings are consistent with previous studies that revealed differences in the CPE needs and preferences among subgroups in the accounting profession (Finlay-Parker, 1996; Hope, 1994; Jamal, 1996; Meyer, 2007). The finding of differences in CPE needs among subgroups also supports the literature on agency theory as modified by the sociology of professions by providing evidence of the control the profession exerts over its members (Almer, Higgs, & Hooks, 2005; Covaleski et al., 1998; Fogarty, 2000).

The professional characteristics related to differences in need for the most CPE topics were prior IFRS training and experience. For all topics where differences existed, CPAs with more IFRS training or experience reported greater need for CPE. Those with no training may have a limited understanding of IFRS and therefore do not perceive the need for training, whereas those with some IFRS training understand the implications of the implementation and therefore perceive a need for more training. The finding supports the use of CPE as a means for a profession to exert control over its members (Houle, 1980). By participating in IFRS related training or working on projects involving IFRS, CPAs have realized the importance of additional training to improve their skills.

Size of the employer was related to need for 9 of the 18 CPE needs. For each of the 9 topics, participants who were from small organizations (those with 1 to 5 accountants) were more likely to say that training in an IFRS related CPE area was not needed than all the other groups. The finding seems to indicate professionals' work environment influences their perceived need for updating (Dubin, 1990). The finding may also be evidence of the effectiveness of more developed bureaucratic control systems that exist in larger organizations (Sharma, 1997). However, the finding may be only a reflection of smaller organizations being less involved with international business.

Interestingly, crosstabulations of years of experience with CPE needs revealed statistically significant differences in 7 of the 18 CPE need areas. For every topic where a statistically significant difference existed, respondents with greater than 20 years of experience were more likely to select not needed than any other group. This finding adds to the agency theory work of Fama and Jensen (1998) related to professionals taking measures to prevent losses in the value of their human capital. The idea of maintaining human capital predicts that CPAs who are closer to retirement will be less likely to invest in something new than early career professionals are.

RECOMMENDATIONS FOR FUTURE RESEARCH

Actual transition to IFRS in the U. S., if it occurs, will provide an opportunity for research into the financial reporting benefits of IFRS in a country that already has a high quality set of accounting standards. Capturing this information during and immediately following a wide-spread implementation would add to the existing literature which mostly focuses on data gathered after a change is already complete (Morris et al., 2014). Research will also be needed into the changes the profession experiences while moving from the rules based approach of U.S. GAAP to the more principles based approach of IFRS. Some areas to be examined are changes in the number and nature of audit findings, the frequency of financial statement restatements, the quality of financial measures, and the frequency and outcome of lawsuits related to financial reporting and auditing before and after IFRS. The number and characteristics of individuals entering and leaving the accounting profession around the time of the change from rules based standards to principles based standards may also be of interest.

CONCLUSION

The finding of differences in CPE needs among the subgroups lends support to the literature on agency theory as modified by the sociology of professions by providing evidence of the control the profession exerts over its members (Almer, Higgs, & Hooks, 2005; Covaleski et al., 1998; Fogarty, 2000) and the use of CPE as a mean for a profession to exert control (Houle, 1980). An individual professional's experiences, contacts, and exposures within the profession influence the choices he or she makes regarding how to maintain competency. Information about CPAs' professional characteristics could be useful in targeting education and training efforts in preparation for change.

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Adena T. LeJeune

Louisiana College

Adena T. LeJeune is a Certified Public Accountant in Louisiana with experience in public accounting and the not-for-profit sector. She earned a Masters in Professional Accountancy from Louisiana Tech University and a PhD in Business Administration with a concentration in Financial Management from Northcentral University. Currently, she is an Assistant Professor of Business at Louisiana College in Pineville, Louisiana. Dr. LeJeune teaches accounting and finance courses and researches in a variety of accounting-related topics.
Table 1
Participant Professional Characteristics (N = 436)

                                         n    Valid %
Accounting area (whether as
employee, partner, or other)
  Public accounting                     241    55.5
  Industry                              137    31.6
  Government                            16      3.7
  Education                             18      4.1
  Other                                 22      5.1
  Missing                                2

Years of experience in
the accounting field
  0-5                                   23      5.3
  >5-10                                 34      7.9
  >10-15                                46     10.6
  >15-20                                77     17.8
  20+                                   253    58.4
  Missing                                3

Highest level
of formal education
  Bachelor's degree                     195    44.8
  Bachelor's degree with at             118    27.1
    least 150 credit hours
  Master's degree                       106    24.4
  Doctorate degree                      16      3.7
    (e.g., PhD, DBA, JD)
  Missing                                1

Prior training in International
Financial Reporting Standards
  No IFRS training                      295    68.0
  8 or fewer hours of                   109    25.1
    IFRS training
  Between 8 and 40 hours                26      6.0
    of IFRS training
  More than 40 hours of                  4      .9
    IFRS training
  Missing                                2

Prior experience with International
Financial Reporting Standards
  Never worked on a project             388    89.4
    involving IFRS
  Some projects involving IFRS, but
    the majority based on U. S. GAAP    42      9.7
  Majority based on IFRS                 4      .9
  Missing                                2

Size of the organization (number
of accounting professionals)
  1-5                                   222    51.5
  6-20                                  111    25.8
  21-50                                 36      8.4
  51-100                                22      5.1
  100 or more                           40      9.3
  Missing                                5

Table 2
Perceived IFRS Related CPE Needs

                               Not
                               Needed       Needed

Topic                        n     %      n     %

IFRS basics and             90    20.6   214   49.1
  first-time adoption
IFRS financial statement    102   23.4   214   49.1
  preparation and
  presentation
Fair value accounting       132   30.3   204   46.8
  issues under IFRS
Asset recognition and       122   28.0   219   50.2
  measurement under IFRS
IFRS accounting for         153   35.1   192   44.0
  financial instruments
Inventory accounting        151   34.6   194   44.5
  under IFRS
IFRS accounting for         126   28.9   218   50.0
  liabilities and
  contingencies
IFRS accounting             152   34.9   195   44.7
  for leases
Revenue recognition         124   28.4   216   49.5
  under IFRS
Employee benefits and       151   34.6   197   45.2
  share-based
  compensation
Accounting for income       134   30.7   213   48.9
  tax under IFRS
Business combinations,      159   36.5   185   42.4
  consolidated financial
  statements, and
  segment reporting
Foreign currency            217   49.8   136   31.2
  transactions and
  financial statement
  translation
Accounting changes          128   29.4   220   50.5

IFRS for small-and          115   26.4   203   46.6
  medium-sized entities
IFRS technical update       140   32.1   208   47.7

Analyzing IFRS              126   28.9   210   48.2
  financial statements
Specialized and             194   44.5   161   36.9
  advanced topics

                              Urgently
                              Needed      Missing

Topic                       n     %     n     %

IFRS basics and             75   17.2   57   13.1
  first-time adoption
IFRS financial statement    65   14.9   55   12.6
  preparation and
  presentation
Fair value accounting       43   9.9    57   13.1
  issues under IFRS
Asset recognition and       37   8.5    58   13.3
  measurement under IFRS
IFRS accounting for         30   6.9    61   14.0
  financial instruments
Inventory accounting        32   7.3    59   13.5
  under IFRS
IFRS accounting for         34   7.8    58   13.3
  liabilities and
  contingencies
IFRS accounting             32   7.3    57   13.1
  for leases
Revenue recognition         37   8.5    59   13.5
  under IFRS
Employee benefits and       28   6.4    60   13.8
  share-based
  compensation
Accounting for income       31   7.1    58   13.3
  tax under IFRS
Business combinations,      34   7.8    58   13.3
  consolidated financial
  statements, and
  segment reporting
Foreign currency            21   4.8    62   14.2
  transactions and
  financial statement
  translation
Accounting changes          27   6.2    61   14.0

IFRS for small-and          61   14.0   57   13.1
  medium-sized entities
IFRS technical update       25   5.7    63   14.4

Analyzing IFRS              41   9.4    59   13.5
  financial statements
Specialized and             15   3.4    66   15.1
  advanced topics

Table 3
Crosstabulations of Organization Size and CPE Needs Part 1

                     1 to   6 to   21 to   51 to   More
                      5      20     50      100    than
                                                   100

                      %      %       %       %      %

IFRS basics and first-time adoption,
[chi square] (8, N = 374) = 12.93,
p = .114

  Not needed         30.4   17.0   13.9    16.7    23.1
  Needed             54.7   59.0   63.9    50.0    53.8
  Urgently needed    14.9   24.0   22.2    33.3    23.1

IFRS financial statement preparation
and presentation, [chi square]
(8, N = 377) = 13.73, p = .089

  Not needed         34.4   17.8   25.0    16.7    20.5
  Needed             52.5   63.4   55.6    55.6    56.4
  Urgently needed    13.1   18.8   19.4    27.8    23.1

Fair value accounting issues under IFRS,
[chi square] (8, N = 375) = 7.72, p = .462

  Not needed         39.9   30.3   30.6    33.3    28.2
  Needed             51.9   56.6   58.3    44.4    56.4
  Urgently needed    8.2    13.1   11.1    22.2    15.4

Asset recognition and measurement under
IFRS, [chi square] (8, N = 374) = 11.31, p = .185

  Not needed         37.6   28.0   30.6    27.8    23.1
  Needed             55.8   62.0   61.1    55.6    56.4
  Urgently needed    6.6    10.0    8.3    16.7    20.5

IFRS accounting for financial instruments,
[chi square] (8, N = 371) = 13.20, p = .105

  Not needed         48.9   33.7   38.9    44.4    23.1
  Needed             45.6   56.1   52.8    44.4    66.7
  Urgently needed    5.6    10.2    8.3    11.1    10.3

Inventory accounting under IFRS,
[chi square] (8, N = 373) = 12.99, p = .112

  Not needed         46.7   36.0   36.1    33.3    28.2
  Needed             48.3   53.0   58.3    55.6    53.8
  Urgently needed    5.0    11.0    5.6    11.1    17.9

IFRS accounting for liabilities and contingencies,
[chi square] (8, N = 374) = 19.18, p = .014

  Not needed         41.2   24.2   30.6    38.9    20.5
  Needed             53.3   65.7   61.1    38.9    64.1
  Urgently needed    5.5    10.1    8.3    22.2    15.4

IFRS accounting for leases,
[chi square] (8, N = 375) = 22.76, p = .004

  Not needed         48.1   35.6   33.3    38.9    23.1
  Needed             47.0   54.5   61.1    33.3    64.1
  Urgently needed    5.0    9.9     5.6    27.8    12.8

Revenue recognition under IFRS,
[chi square] (8, N = 373) = 17.07 p = .029

  Not needed         39.6   26.3   28.6    27.8    25.6
  Needed             54.9   62.6   62.9    50.0    53.8
  Urgently needed    5.5    11.1    8.6    22.2    20.5

Table 4
Crosstabulations of Organization Size and CPE Needs Part 2

                     1 to   6 to   21 to   51 to   More
                      5      20     50      100    than
                                                   100

                      %      %       %       %      %

Employee benefits and share-based compensation,
[chi square] (8, N = 372) = 14.54, p = .069

  Not needed         48.9   33.7   35.3    38.9    23.1
  Needed             46.1   56.4   58.8    55.6    64.1
  Urgently needed    5.0    9.9     5.9     5.6    12.8

Accounting for income tax under IFRS,
[chi square] (8, N = 374) = 19.95, p = .011

  Not needed         45.6   25.0   33.3    22.2    23.7
  Needed             49.5   66.0   55.6    61.1    63.2
  Urgently needed    4.9    9.0    11.1    16.7    13.2

Business combinations, consolidated financial statements,
and segment reporting, [chi square] (8, N = 374) = 15.74, p = .046

  Not needed         50.8   36.0   36.1    44.4    23.1
  Needed             42.0   56.0   52.8    38.9    64.1
  Urgently needed    7.2    8.0    11.1    16.7    12.8

Foreign currency transactions and financial statement
translation, [chi square] (8, N = 371) = 16.63, p = .034

  Not needed         66.7   57.1   44.4    55.6    35.9
  Needed             28.3   37.8   50.0    38.9    56.4
  Urgently needed    5.0    5.1     5.6     5.6    7.7

Accounting changes, [chi square] (8 N = 371) = 17.43, p = .026

  Not needed         39.1   35.4   19.4    27.8    25.6
  Needed             56.4   58.6   75.0    55.6    56.4
  Urgently needed    4.5    6.1     5.6    16.7    17.9

IFRS for small-and medium-sized entities, [chi square]
(8, N = 375) = 5.67, p = .684

  Not needed         31.1   25.3   38.9    22.2    33.3
  Needed             55.2   56.6   47.2    50.0    48.7
  Urgently needed    13.7   18.2   13.9    27.8    17.9

IFRS technical update, [chi square] (8, N = 370) = 8.56, p = .381

  Not needed         43.3   35.1   30.6    27.8    28.2
  Needed             51.7   58.8   63.9    61.1    59.0
  Urgently needed    5.0    6.2     5.6    11.1    12.8

Analyzing IFRS financial statements,
[chi square] (8, N = 373) = 19.15, p = .014

  Not needed         41.3   29.7   25.0    16.7    23.1
  Needed             51.4   60.4   63.9    55.6    56.4
  Urgently needed    7.3    9.9    11.1    27.8    20.5

Specialized and advanced topics, [chi square]
(8, N = 36 >7) = 24.09, p = .002

  Not needed         62.6   46.9   44.4    50.0    28.9
  Needed             33.5   50.0   55.6    50.0    60.5
  Urgently needed    3.9    3.1     0.0     0.0    10.5

Table 5
Crosstabulations of Educational Level and CPE Needs Part 1

                                  Bachelor's
                     Bachelor's    with 150    Master's   Doctorate
                       degree        hours      degree

                         %            %           %           %

IFRS basics and first-time adoption,
[chi square] (6, N = 378) = 6.23, p = .398

  Not needed            23.7         29.4        18.3       21.4
  Needed                58.6         51.0        60.2       42.9
  Urgently needed       17.8         19.6        21.5       35.7

IFRS financial statement preparation and presentation,
[chi square] (6, N = 380) = 5.21, p = .517

  Not needed            26.3         32.4        22.3       23.1
  Needed                59.6         50.0        56.4       53.8
  Urgently needed       14.0         17.6        21.3       23.1

Fair value accounting issues under IFRS,
[chi square] (6, N = 378) = 4.62, p = .593

  Not needed            34.9         41.2        28.7       30.8
  Needed                55.0         46.1        59.6       53.8
  Urgently needed       10.1         12.7        11.7       15.4

Asset recognition and measurement under IFRS,
[chi square] (6, N = 377) = 3.57, p = .735

  Not needed            33.3         36.3        27.7       23.1
  Needed                58.3         52.0        61.7       69.2
  Urgently needed       8.3          11.8        10.6        7.7

IFRS accounting for financial instruments,
[chi square] (6, N = 375) = 10.573, p = .102

  Not needed            45.8         43.1        31.9       23.1
  Needed                48.2         46.1        58.5       76.9
  Urgently needed       6.0          10.8        9.6         0.0

Inventory accounting under IFRS,
[chi square] (6, N = 377) = 4.91, p = .556

  Not needed            41.7         44.7        33.3       30.8
  Needed                51.2         44.7        58.1       61.5
  Urgently needed       7.1          10.7        8.6         7.7

IFRS accounting for liabilities and contingencies,
[chi square] (6, N = 377) = 6.66, p = .353

  Not needed            34.1         38.8        26.6       30.8
  Needed                58.1         49.5        63.8       69.2
  Urgently needed       7.8          11.7        9.6         0.0

IFRS accounting for leases, [chi square]
(6, N = 378) = 8.45, p = .207

  Not needed            42.9         44.7        33.0       23.1
  Needed                50.0         44.7        57.4       76.9
  Urgently needed       7.1          10.7        9.6         0.0

Revenue recognition under IFRS, [chi square]
(6, N = 377) = 4.40, p = .623

  Not needed            33.5         36.3        29.3       23.1
  Needed                57.1         52.0        60.9       76.9
  Urgently needed       9.4          11.8        9.8         0.0

Table 6
Crosstabulations of Educational Level and CPE Needs Part 2

                                  Bachelor's
                     Bachelor's    with 150    Master's   Doctorate
                       degree       hours       degree
                         %            %           %           %

Employee benefits and share-based compensation,
[chi square] (6, N = 375) = 2.87, p = .825

  Not needed            42.2         41.7        37.6       23.1
  Needed                50.6         49.5        55.9       52.3
  Urgently needed       7.2          8.7         6.5         7.7

Accounting for income tax under IFRS,
[chi square] (6, N = 377) = 10.48, p = .106

  Not needed            39.6         37.9        29.3        7.7
  Needed                54.4         50.5        62.0       84.6
  Urgently needed       5.9          11.7        8.7         7.7

Business combinations, consolidated financial statements,
and segment reporting, [chi square] (6, N = 377) = 8.399, p = .210

  Not needed            44.0         43.7        37.6       38.5
  Needed                51.2         42.7        50.5       53.8
  Urgently needed       4.8          13.6        11.8        7.7

Foreign currency transactions and financial statement
translation, [chi square] (6, N = 374) = 5.57, p = .474

  Not needed            61.9         57.8        51.6       53.8
  Needed                35.1         34.3        40.7       38.5
  Urgently needed       3.0          7.8         7.7         7.7

Accounting changes, [chi square]
(6, N = 375) = 8.26, p = .220
  Not needed            36.4         33.0        31.9       30.8
  Needed                59.4         54.4        60.6       69.2
  Urgently needed       4.2          12.6        7.4         0.0

IFRS for small-and medium-sized entities,
[chi square] (6, N = 379) = 3.34, p = .765

  Not needed            30.6         31.1        28.0       38.5
  Needed                51.8         54.4        54.8       61.5
  Urgently needed       17.6         14.6        17.2        0.0

IFRS technical update, [chi square]
(6, N = 373) = 7.90, p = .245

  Not needed            37.6         41.2        32.3       46.2
  Needed                58.2         48.0        60.2       53.8
  Urgently needed       4.2          10.8        7.5         0.0

Analyzing IFRS financial statements,
[chi square] (6, N = 376) = 5.61, p = .469

  Not needed            34.1         38.8        26.6       33.3
  Needed                57.5         48.5        59.6       58.3
  Urgently needed       8.4          12.6        13.8        8.3

Specialized and advanced topics,
[chi square] (6, N = 370) = 5.30, p = .506

  Not needed            56.0         51.5        45.6       61.5
  Needed                41.6         42.6        48.9       38.5
  Urgently needed       2.4          5.9         5.6         0.0

Table 7
Crosstabulations of Level of IFRS Training and CPE Needs Part 1

                    No IFRS    8 or fewer   More than
                    training     hours       8 hours
                       %           %            %

  Not needed          26.6        15.8        24.1
  Needed              56.5        55.4        62.1
  Urgently needed     16.9        28.7        13.8

  Not needed          32.7        14.6        17.2
  Needed              52.4        63.1        65.5
  Urgently needed     14.9        22.3        17.2

  Not needed          44.1        17.5        14.3
  Needed              45.3        69.9        71.4
  Urgently needed     10.5        12.6        14.3

  Not needed          40.4        17.5        13.8
  Needed              50.6        70.9        75.9
  Urgently needed     9.0         11.7        10.3

  Not needed          48.2        26.7        25.0
  Needed              44.9        64.4        60.7
  Urgently needed     6.9         8.9         14.3

  Not needed          48.6        23.5        24.1
  Needed              43.7        67.6        62.1
  Urgently needed     7.8         8.8         13.8

  Not needed          40.4        21.4        13.8
  Needed              51.4        68.0        75.9
  Urgently needed     8.2         10.7        10.3

  Not needed          48.6        25.0        20.7
  Needed              44.5        63.5        69.0
  Urgently needed     6.9         11.5        10.3

  Not needed          40.2        17.5        22.2
  Needed              50.4        71.8        66.7
  Urgently needed     9.3         10.7        11.1

Table 8
Crosstabulations of Level of IFRS Training and CPE Needs Part 2

                    No IFRS    More than
                    training    8 hours
                       %           %

  Not needed          47.9       17.2
  Needed              45.5       69.0
  Urgently needed     6.6        13.8

  Not needed          44.1       21.4
  Needed              49.0       64.3
  Urgently needed     6.9        14.3

  Not needed          50.2       24.1
  Needed              42.9       62.1
  Urgently needed     6.9        13.8

  Not needed          63.0       44.8
  Needed              31.3       44.8
  Urgently needed     5.8        10.3

  Not needed          40.1       20.7
  Needed              53.7       72.4
  Urgently needed     6.2         6.9

  Not needed          33.2       37.9
  Needed              52.2       44.8
  Urgently needed     14.6       17.2

  Not needed          44.7       10.7
  Needed              48.8       78.6
  Urgently needed     6.6        10.7

  Not needed          40.2       24.1
  Needed              50.0       65.5
  Urgently needed     9.8        10.3

  Not needed          59.8       25.0
  Needed              36.9       67.9
  Urgently needed     3.3         7.1

Table 9
Crosstabulations of Level of IFRS Experience and CPE Needs Part 1

                    Never worked    Some or the
                     on an IFRS     majority of
                      project      projects were
                         %         IFRS projects
                                         %

  Not needed            25.6            8.7
  Needed                55.4           65.2
  Urgently needed       19.0           26.1

  Not needed            29.0           10.9
  Needed                54.8           65.2
  Urgently needed       16.2           23.9

  Not needed            38.1           11.1
  Needed                51.7           68.9
  Urgently needed       10.2           20.0

  Not needed            35.0           13.0
  Needed                57.1           65.2
  Urgently needed       7.9            21.7

  Not needed            43.8           17.8
  Needed                48.9           68.9
  Urgently needed       7.3            13.3

  Not needed            43.0           19.6
  Needed                49.7           63.0
  Urgently needed       7.3            17.4

  Not needed            36.3           10.9
  Needed                55.9           71.7
  Urgently needed       7.9            17.4

  Not needed            43.4           17.4
  Needed                49.1           67.4
  Urgently needed       7.5            15.2

  Not needed            35.3           15.6
  Needed                55.6           68.9
  Urgently needed       9.1            15.6

Table 10
Crosstabulations of Level of IFRS Experience and CPE Needs Part 2

                    Never worked    Some or the
                     on an IFRS    majority of
                      project      projects were
                         %         IFRS projects
                                         %

  Not needed            42.4           22.2
  Needed                51.2           62.2
  Urgently needed       6.4            15.6

  Not needed            38.4           15.2
  Needed                54.7           69.6
  Urgently needed       6.9            15.2

  Not needed            45.0           21.7
  Needed                47.4           58.7
  Urgently needed       7.6            19.6

  Not needed            59.5           46.7
  Needed                35.7           42.2
  Urgently needed       4.9            11.1

  Not needed            36.8           15.6
  Needed                57.1           68.9
  Urgently needed       6.1            15.6

  Not needed            32.2           15.2
  Needed                52.7           60.9
  Urgently needed       15.1           23.9

  Not needed            40.9           11.4
  Needed                52.7           79.5
  Urgently needed       6.4             9.1

  Not needed            36.4           13.0
  Needed                53.0           73.9
  Urgently needed       10.6           13.0

  Not needed            53.7           44.4
  Needed                42.6           48.9
  Urgently needed       3.7             6.7

Table 11
Crosstabulations of Years of Experience and CPE Needs Part 1

                      0       6      11      16      More
                     to 5   to 10   to 15   to 20   than 20
                      %       %       %       %        %

IFRS basics and first-time adoption,
[chi square] (8, N = 376) = 29.65, p < .001

  Not needed         5.0    23.3    14.3    22.4     28.1
  Needed             45.0   36.7    61.9    58.2     58.5
  Urgently needed    50.0   40.0    23.8    19.4     13.4

IFRS financial statement preparation and presentation,
[chi square] (8, N = 378) = 19.20, p = .014

  Not needed         5.3    20.0    21.4    27.9     30.6
  Needed             63.2   43.3    54.8    57.4     56.6
  Urgently needed    31.6   36.7    23.8    14.7     12.8

Fair value accounting issues under IFRS,
[chi square] (8, N = 376) = 14.29, p = .074

  Not needed         5.3    33.3    28.6    31.3     40.4
  Needed             89.5   53.3    57.1    55.2     49.1
  Urgently needed    5.3    13.3    14.3    13.4     10.6

Asset recognition and measurement under
IFRS, [chi square] (8, N = 375) =11.29, p = .186

  Not needed         5.3    30.0    28.6    28.4     37.3
  Needed             84.2   63.3    64.3    59.7     52.5
  Urgently needed    10.5    6.7     7.1    11.9     10.1

IFRS accounting for financial instruments,
[chi square] (8, N = 373) = 18.62, p = .017

  Not needed         5.3    30.0    33.3    38.8     47.9
  Needed             89.5   60.0    57.1    52.2     44.7
  Urgently needed    5.3    10.0     9.5     9.0      7.4

Inventory accounting under IFRS, [chi square]
(8, N = 375) = 14.67, p = .066

  Not needed         5.3    33.3    45.2    34.3     45.2
  Needed             84.2   60.0    45.2    56.7     46.5
  Urgently needed    10.5    6.7     9.5     9.0      8.3

IFRS accounting for liabilities and contingencies,
[chi square] (8, N = 375) = 10.35, p = .241

  Not needed         5.3    31.0    26.2    33.3     37.9
  Needed             78.9   58.6    64.3    56.1     54.3
  Urgently needed    15.8   10.3     9.5    10.6      7.8

IFRS accounting for leases,
[chi square] (8, N = 376) = 16.24, p = .039

  Not needed         5.3    40.0    33.3    35.8     46.3
  Needed             78.9   46.7    54.8    55.2     47.2
  Urgently needed    15.8   13.3    11.9     9.0      6.4

Revenue recognition under IFRS,
[chi square] (8, N = 375) = 13.45 p = .097

  Not needed         5.3    27.6    35.7    29.9     36.7
  Needed             73.7   55.2    52.4    58.2     56.4
  Urgently needed    21.1   17.2    11.9    11.9      6.9

Table 12
Crosstabulations of Years of Experience and CPE Needs Part 2

                     0       6      11      16      More
                    to 5   to 10   to 15   to 20   than 20
                     %       %       %       %        %

Employee benefits and share-based compensation,
[chi square] (8, N = 373) =27.34, p = .001

  Not needed        10.5   36.7    22.0    30.3     50.2
  Needed            84.2   53.3    63.4    62.1     43.8
  Urgently needed   5.3    10.0    14.6     7.6      6.0

Accounting for income tax under IFRS,
[chi square] (8, N = 375) = 11.97, p = .153

  Not needed        10.5   26.7    31.0    32.8     41.0
  Needed            84.2   60.0    57.1    59.7     51.6
  Urgently needed   5.3    13.3    11.9     7.5      7.4

Business combinations, consolidated financial statements,
and segment reporting, [chi square] (8, N = 375) = 16.60, p = .035

  Not needed        10.5   36.7    38.1    37.9     48.2
  Needed            73.7   46.7    50.0    57.6     43.6
  Urgently needed   15.8   16.7    11.9     4.5      8.3

Foreign currency transactions and financial statement
translation, [chi square] (8, N = 373) = 13.92, p = .084

  Not needed        26.3   56.7    64.3    61.2     59.1
  Needed            68.4   30.0    31.0    35.8     35.3
  Urgently needed   5.3    13.3     4.8     3.0      5.6

Accounting changes, [chi square] (8, N = 373) = 17.58, p = .025

  Not needed        5.3    30.0    24.4    28.4     41.2
  Needed            84.2   56.7    68.3    67.2     51.9
  Urgently needed   10.5   13.3     7.3     4.5      6.9

IFRS for small-and medium-sized entities,
[chi square] (8, N = 377) = 10.76, p = .216

  Not needed        11.1   26.7    31.0    23.9     34.5
  Needed            72.2   50.0    57.1    52.2     51.8
  Urgently needed   16.7   23.3    11.9    23.9     13.6

IFRS technical update,
[chi square] (8, N = 372) = 8.02, p = .432

  Not needed        10.5   40.0    33.3    36.9     40.7
  Needed            84.2   53.3    59.5    56.9     52.3
  Urgently needed   5.3     6.7     7.1     6.2      6.9

Analyzing IFRS financial statements,
[chi square] (8, N = 374) = 14.71, p = .065

  Not needed        10.5   27.6    33.3    28.4     38.2
  Needed            63.2   51.7    57.1    58.2     53.9
  Urgently needed   26.3   20.7     9.5    13.4      7.8

Specialized and advanced topics, [chi square]
(8, N = 369) = 9.67, p = .289

  Not needed        36.8   60.0    50.0    49.2     54.5
  Needed            63.2   30.0    42.9    47.7     42.3
  Urgently needed   0.0    10.0     7.1     3.1      3.3
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Title Annotation:International Financial Reporting Standards
Author:LeJeune, Adena T.
Publication:International Journal of Business, Accounting and Finance (IJBAF)
Article Type:Report
Geographic Code:1USA
Date:Mar 22, 2015
Words:9618
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