Where Does the Us Stand on the Adoption of Ifrs?

Powerful Essays
Report: Where does the US stand on the adoption of IFRS? - 2012
Abstract
The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have committed to work together to develop future standards jointly (FASB, 2011). Nonetheless, the key differences will have to be resolved and many believe the FASB will ultimately adopt international standards completely. This report seeks to discuss the US situation on the adoption of IFRS (International Financial Reporting Standards, as prescribed by IASB) and the possible effect of adoption on non-public businesses and the public?

In September, 2002, one of the most significant changes in the future direction of the United States’ accounting regulations occurred during a joint meeting of the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The meeting concluded with the Norwalk Agreement that articulated the commitment of both renowned boards to converge their standards into a single set of high quality global accounting standards (FASB and IASB, 2002). Since that meeting, the International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP) have been gravitating towards one another.
In the United States of America, the Financial Accounting Standards Board (FASB) currently has the jurisdiction to set accounting standards. The



Bibliography: AuditWatch. (2010, April 19). Big gaap vs. little gaap. Retrieved from http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2010/CPA/Apr/Little_GAAP.jsp Cherry Bekaert & Holland Defelice, M., & Lamoreaux, M. (2010). No IFRS requirement until 2015 or later under new sec timeline. Journal of Accountancy, Retrieved from http://www.journalofaccountancy.com/Web/20102656.htm FASB, org (Fair Value Project, 2011). Retrieved from http://www.fasb.org/cs/ContentServer?site=FASB&c=FASBContent_C&pagename=FASB/FASBContent_C/ProjectUpdatePage&cid=1176159437418 FASB and IASB E&Y. (2006, Sept). Ernst and Young- Observations on the implementation of IFRS. Retrieved from www.swisco.ch/swisco5/seminaires/ifrs/200609_EY_Observations_on_IFRS.pdf Humphrey, Jack IFRS, org (2011) Spiceland, D., Sepe, J., Nelson, M., Tomassini, L. (2009). Intermediate accounting 5edition. New York City: McGraw-Hill Irwin. [ 2 ]. The AICPA urged the SEC to adopt IFRS. (Humphrey, 2011) [ 3 ]

You May Also Find These Documents Helpful

  • Good Essays

    Gornik-Tomaszewski, S., & Showerman, S. (2010). IFRS in the United States: Challenges and Opportunities. Review of Business, 30(2), 59-71.…

    • 1795 Words
    • 8 Pages
    Good Essays
  • Best Essays

    Ding, Y., & Su, X. (2008). Implementation of IFRS in a regulated market. Journal of Accounting and Public Policy, 27, 474- 479.…

    • 4364 Words
    • 18 Pages
    Best Essays
  • Powerful Essays

    International Financial Reporting Standards (IFRS) are accounting standards, interpretations and the framework adopted by the International Accounting Standards Board (IASB). Part of IFRS are known by International Accounting Standards (IAS). IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). In April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards. The IASB has continued to develop standards calling the new standards IFRS.…

    • 2065 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Adoption of Ifrs

    • 3173 Words
    • 13 Pages

    7. Ray Ball, 2006. International Financial Reporting Standards (IFRS): Pros and Cons for Investors, Journal of Accounting Research…

    • 3173 Words
    • 13 Pages
    Best Essays
  • Best Essays

    U.S. GAAP vs IFRS

    • 3430 Words
    • 14 Pages

    Poschke, Moritz (2012, March). Incorporation of the IFRS in the United States: An Analysis of the SEC 's Options and the implications for the EU. p51-75 23p.…

    • 3430 Words
    • 14 Pages
    Best Essays
  • Best Essays

    Sector Neutral

    • 1739 Words
    • 6 Pages

    The process undertaken is as follows. Part I defines sector neutrality. Part II looks at the impact of adoption of IFRS on both the public and private sector. Part III studies the differences…

    • 1739 Words
    • 6 Pages
    Best Essays
  • Powerful Essays

    International Financial Reporting Standards (IFRS) is a comprehensive, globally accepted set of accounting standards utilizing a principles-based approach with a greater emphasis on interpretation and application of those principles, aiming at best reflecting the economic substance of transactions. It is a less extensive body of literature than U.S. Generally accepted accounting principles (GAAP)…

    • 4325 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Journal of Accountancy (2007), “Simplifying global accounting: IASB chair discusses the future of IFRS, US GAAP and the global accounting profession”, Journal of Accountancy, Vol…

    • 14962 Words
    • 60 Pages
    Powerful Essays
  • Better Essays

    International Business

    • 2160 Words
    • 9 Pages

    There have been many reports regarding the United States switching from Generally Accepted Accounting Principles (GAAP) in favor of the international standards, International Financial Reporting Standards (IFRS), followed by most of the world. This modification would represent one of the prevalent accounting rule changes for public companies based in the U.S. Among other issues, it would likely dislodge the Financial Accounting Standards Board, or FASB, as the U.S.’s chief accounting authority, incorporating it under the London-based International Accounting Standards Board (IASB).…

    • 2160 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    The global trend towards IFRS represents a significant change and opportunity for many investors, companies and capital market. IFRS a global set of accounting standards may provide benefits such as greater transparency and comparability of financial information across countries. As companies compete globally, the movement towards IFRS is rapidly becoming one of the most important issues for companies to address today. Starting April 1, 2011, India has made it mandatory for every listed company to adopt International Financial Reporting Standards or IFRS. One year is a very short time when it comes to a major overhaul of the accounting process.…

    • 2288 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    References: AcSB On track for adding IFRS to Handbook. CA Magazine, 142 (9), 14. Retrieved November…

    • 1900 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    ACCY200 ESSAY

    • 2339 Words
    • 7 Pages

    Today, in this contemporary society, almost all the countries around the globe are exposed and adopting the International Financial Reporting Standards (IFRSs) in computing their annual financial report, even Australia and Malaysia itself. IFRSs was originated and developed by the International Accounting Standards Board (IASB) in the year 2001 and it was established as the successor organisation to the International Standards Committee (IASC) which was formed during the year 1973. IASB was chaired by Sir David Tweedie. (IFRS , 2014) In precise, the “primary mandate of the IASB is to promulgate IFRSs”. (Paul & Burks, 2010, p2) As a matter of fact, “Australian companies complying with Australian Accounting Standards (AASB) had adopted IFRSs for application entities reporting under Corporations Act 2001 beginning on or after 1 January 2005”. (Australia Accounting Standard Board, 2014)…

    • 2339 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Gornik-Tomaszewski, Sylwia & Showerman, Stebe. March 22, 2010. IFRS in the United States: Challenges and Opportunities. Review of Business. St. John’s University, College of Business Administration…

    • 1303 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Ifrs in Canada

    • 1244 Words
    • 5 Pages

    Putting Canada on a continuum between fully converging or partially converging with the international financial reporting standards (IFRS) with their “Made in Canada” (Canadian Institute of Chartered Accountants [CICA], 2006) generally accepted accounting practice (GAAP), Canada would lie very close, if not on the line of convergence.…

    • 1244 Words
    • 5 Pages
    Powerful Essays