Ifrs Adoption in the Us - White Paper - 1463 Words

Adoption of IFRS in U.S. Companies – The Sooner, the Better Introduction Source: http://us.kpmg.com/jnet/English/Archives/2009/Issue1/images/map_en.gif IFRS Implementation Around the World (2008) Over 120 countries around the world already permit or even require public companies to use the new International Financial Accounting Standards IFRS. Among them are the EU, China, Russia, and Brazil. Canada and Korea are expected to adopt IFRS by 2012; Mexico will require all listed companies to adopt IFRS in 2012 (http://www.ifrs.com/ifrs_faqs.html#q1). The U.S., despite a strong initial reluctance to adopt the new standards, are currently working toward a convergence of U.S. GAAP and IFRS. The SEC recently approved 2015 as the earliest†¦show more content†¦U.S. companies would have to adopt IFRS’ way of valuing assets and liabilities just to remain competitive without understating for example their total assets (http://www.aleablog.com/ifrs-vs-us-gaap-european-banks-leverage-overstated-picture/). Source: http://www.ifrs.com/updates/aicpa/Backgrounder_pdf.html A set of internationally recognized accounting standards facilitates capital flows across borders. Globally accepted standards make financial information readily comparable for its users. Foreign investors are more inclined to put money into a U.S. company if they are familiar with the company’s financial reporting. Conversely, U.S. investors will find it easier and less risky to invest in foreign companies when they know the local accounting standards (Epstein 2009). This will make U.S. companies and capital markets more competitive, since it saves costly reconcilition of different standards. Preparers, investors, auditors, and others will benefit from these cost effieciencies, since a Results of an IFAC Survey among accounting leaders around the world with respect to the importance of convergence to International Financial Reporting Standards for economic growth in their countries: global standard allows them to operate in a single accounting environment worldwide (Pricewate rhouseCoopers 2007). The globally positive attitude towards an convergence to IFRS is exemplified by an IFAC survey amongShow MoreRelatedPrincipal vs Rule Based Accounting1733 Words   |  7 PagesAn Insight on IFRS versus U.S GAAP amp; Implications of IFRS adoption on Financial Statement and Accounting Quality Q2) Principle and rule-based accounting reflect different approaches to accounting. The pros and cons of rule-based accounting (RBA) and principle-based accounting (PBA) are as discussed. (1) RBA deters creative accounting as rules reduce opportunistic discretion unlike PBA which is more subjective and ambiguous.On the other hand, others argue that rules are a means to circumventRead MoreUs Accounting Standards vs. International Accounting Standards1742 Words   |  7 Pagesbetween the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted AccountingRead Mor eThe Development Of Global Financial Reporting1871 Words   |  8 PagesEnron and WorldCom are getting get caught for fraudulent behavior. Thus, increasing new regulations will not help eliminate fraudulent and criminal activities because it will just would result in more conflicts. The best possible way to help eliminate white collar crimes in the United States is to persuade companies to change their financial accounting practices. This is because increasing more regulations such as The Securities Acts of 1933 and 1934, the Foreign Corrupt Practices Act of 1977, and theRead MoreCons and Pros of Internet16245 Words   |  65 PagesAccounting and Business Research, International Accounting Policy Forum. pp. 5-27. 2006 5 International Financial Reporting Standards (IFRS): pros and cons for investors Ray Ball* Abstract—Accounting in shaped by economic and political forces. It follows that increased worldwide integration of both markets and politics (driven by reductions in communications and information processing costs) makes increased integration of financial reporting standards and practice almost inevitable. But mostRead MoreConvergence of Ifrs and Us Gaap15636 Words   |  63 Pages GLASGOW CALEDONIAN UNIVERSITY Department of Law, Economics, Accountancy amp; Risk BA (Hons) Accountancy Honours Dissertation – Year 2012/2013 Author: David Mcconnell Title: ‘A critical analysis into the convergence of IFRS and US GAAP in the United States’ â€Å"I declare that this dissertation is my own original work and has not been submitted elsewhere, wholly or partly, in the fulfilment of the requirements of this or any other award. Academic citation standards have been maintained andRead MoreEarnings Management, in Exchange Listed Companies, Is Not Fraud but a Case of Caveat Emptor for Investors2071 Words   |  9 Pagesdue to speculators expectation. For example let us take the case of Enron – one of the biggest US companies in early 2000’s. Enron was leading company in electricity, communication, pulp, paper and natural gas sphere. In 2000 Enron Corporation reported nearly $101 billion. According to BBC site, â€Å" it was the first to realize energy and water could be bought, sold, and hedged just like shares and bonds. Enron became a huge market-maker in the US, acting as the main broker in energy products, alsoRead MoreSpain Sub Prime Crisis7850 Words   |  32 PagesStudy case: Spain Author: | Supervisor: | | | Department of †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ January 2014 Abstract How did the Subprime Crisis, a small problem of U.S. ï ¬ nancial markets, aï ¬â‚¬ect the entire global banking system? The aim of this paper is to analyze the effect of the subprime crisis on the banking sector in Europe, with a close attention on the case of Spain. Spain is currently facing the worst crisis ever experienced in its financial history, so it would be interesting to analyzeRead MoreAccounting 1-4 Chapter100452 Words   |  402 PagesText and Answer Do it! p. 5 p. 11 p. 18 p. 20 Work Using the Decision Toolkit Review Summary of Study Objectives Work Comprehensive Do it! p. 23 Answer Self-Test Questions Complete Assignments Go to WileyPLUS for practice and tutorials Read A Look at IFRS p. 42 study objectives After studying this chapter, you should be able to: 1 Describe the primary forms of business organization. 2 Identify the users and uses of accounting information. 3 Explain the three principal types of business activityRead MoreA-201: Financial Accounting Study Guide25403 Words   |  102 Pagescustomers, usually through retailers, or to other manufacturers who used them as raw materials. Ex) General Motors, IBM, PepsiCo. 2) Retail Firms – Purchase goods from manufacturers and sell them to consumers. Ex) Wal-Mart, Kohl’s, Lowe’s, Toys R Us, J.C. Penny. 3) Service Firms – Include both General Service Firms (ATamp;T, Fed-Ex, Hamp;R Block), Financial Firms (Citicorp, American Express), and Internet Firms (Google). The Standard Industrial Classification (SIC) Index provides specific industryRead MoreEssay about Agency Problem26370 Words   |  106 Pages— is usually a strategic choice made by a ï ¬ rm to secondarily list its equity shares trading in a home market exchange on a new overseas market. It may or may not involve an initial or secondary capital-raising and it ☆ An early version of this paper was presented as the keynote address at the 4th Singapore International Conference on Finance (July 2010). I thank Vojislav Maksimovic for the initial encouragement to pursue this project, the editor, Peter Szilagyi, and an anonymous referee for