I am for U.S. Gaap to change to IFRS. The main reason why I think this change should be made is because IFRS is global. The US GAAP is only good for the U.S. There are a few others reasons why I think this change should be made.
U.S. GAAP (Generally Accepted Accounting Principles) is useful to present to potential investors and creditors and other users in making rational investment, credit and other financial decisions. The U.S GAAP has some helpful things to offer. They are helpful for making financial decisions, making long term decisions, improving the performance of the business and in maintaining records. U.S GAAP earnings are typically better indicators of future firm performance. If U.S GAAP was nationwide I would say keep the US GAAP principle because they are helpful in many ways.
IFRS is Internal Financial Reporting Standards. The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements, rather than setting rules for industry specific reporting. IFRS is important for large companies that have subsidiaries in different countries. The IFRS could improve credit ratings. IFRS requires the segregation of fixed assets into components. IFRS permits the capitalization of development cost and IFRS conversion warrants consideration. IFRS is already impacting business decisions, and not simply through non U.S. subsidiaries.
After comparing U.S. GAAP to IFRS I don’t see a problem changing to IFRS. Some of the companies who made the change already didn’t see a difference. U.S. GAAP and IFRS earnings perform equally well on vale relevance, timeliness and an accruals quality.