Comments On Roadmap Project

-Intel Corporation

Team 11:
Icy Song
Grace Ding
Xueming Bai
 Commenter’ reasonings

The bottom line:

• standard setting cannot be disconnected from the
national mandate to protect U.S investor!

• Who will be responsible?

• Congress? FASB?

High Tech Product Design

 Commenter’ reasonings

• The comprehensiveness of IFRS can be evaluated

today by superimposing the convergence roadmap
onto the existing IFRS framework.
• independent areas?

• variable efforts vs. fixed efforts?

High Tech Product Design

Intel’s Position

•The company supports the goal of global transparency and

comparability of financial Information.

•Continued convergence of U.S GAAP and IFRS is more cost-effective th

a single set of standards.

•The adoption date of IFRS should be extended to 2016 instead of 2014.

•The evaluation of IFRS in 2011 is not necessary.
Intel’s Motive

To minimize costs and risks !

 Costs

•The estimated conversion costs to the shareholders are

$50 million.

 How to justify this investment to shareholders

 Huge Expense Low Profitability Stock Price

 Continued convergence could save money and expense

the total costs over a longer period.
 Risks

•Loss of control of the U.S business environment

How the SEC can fulfill its mandate under IFRS
Loss of control Loss of investors’ confidence

•Risks on early movement

The benefit of early adoption is contingent upon the 2011 evaluation

•Not enough time for the transition period

Key Arguments Omitted by the Commenter

• Impact on its investors – financial information users

• Differences between IFRS and GAAP leave room for interpretation

• External audit firms are not well prepared

• Other non-financial costs