By 2010, foreign companies will be able to file on U.S. Stock Exchanges using IFRS standards.
With that in mind, what are some of the challenges facing the accounting profession, and how do you see them affecting you in the future?
Provide specific details to support your opinion in your response.
Professor and Class,
Countries using International Financial Reporting Standards rules and guidelines can be somewhat complicated because IFRS sets its own rules how companies prepare and disclose their financial statements. Whereas, U.S. GAAP guidelines are pretty much standard across the board and is established by the Financial Accounting Standards Board (FASB). I think the challenges facing accounting professional, is knowledge. I think it is essential that accounting professional gain a complete understanding of IFRS rules. I also think it is important to implement IFRS guidelines into GAAP, without manipulating GAAP principles and SEC regulations.
References: Warfield, T. D., Weygandt, J. J., & Kieso, D. E. (2008). Intermediate accounting, principles and analysis. Hoboken: Wiley.
I agree with your post. New accounting practices are hard to learn…
When new accounting practices are introduced, problems can occur when accounting professionals misunderstand other countries IFRS principles compared to U.S. GAAP accounting standards. Because these filing requirements are different, the accounting professional must be able to transition related transactions without risk of manipulating financial statements according to GAAP accounting principles.
I agree with your post!
I think global accounting standards are challenging for accounting professionals today. I think it is important that all participants, especially those who work in integrated world capital markets where the demands are comparability and transparency of financial reporting are used...