Business
Executive Summary
The purpose of this report is to provide relevant background information of the United States’ convergence to International Financial Reporting Standards (IFRSs), and hence the current developments in the relationship between the United States’ Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB). This report focuses on the current situation of the convergence process and the obstacles of U.S. IFRSs.
This report consists of 4 parts: Background Information, Current Developments in U.S., Obstacles to U.S. adoption of IFRS and Implications of US-IFRS Convergence. In the first part, the report shows the definition of IFESs and the incentives of the convergence. The second part focuses on current developments in U.S. And the third part analyse the obstacles to U.S. adoption of IFRS in three aspects, cultural issue, regulatory issues and practical issues. Lastly, the report provides the likely implications that the US-IFRS convergence will exert on companies.
To sum up, this report aim to give corporations, especially with international operations, and detailed information about U.S IFRSs, to support the fast sustainable development in the future.
Table of Contents
Executive Summary1
Introduction3
1.0 Background Information3
2.0 Current Developments in U.S.4
3.0 Obstacles to U.S. adoption of IFRS5 3.1 Cultural Issues5 3.2 Regulatory Issues5 3.3 Practical Issues5
4.0 Implications of US-IFRS Convergence 6 4.1 Implications of US-IFRS on tax accounting methods6 4.2 Economic implications of US-IFRS convergence6 4.3 Implications of US-IFRS convergence on technology6
Conclusion7
References List8
Introduction
The IFRS Foundation is an independent, not-for-profit private sector organization working in the public interest, which are also responsible for safeguarding the independence of the IASB and ensuring the
The purpose of this report is to provide relevant background information of the United States’ convergence to International Financial Reporting Standards (IFRSs), and hence the current developments in the relationship between the United States’ Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB). This report focuses on the current situation of the convergence process and the obstacles of U.S. IFRSs.
This report consists of 4 parts: Background Information, Current Developments in U.S., Obstacles to U.S. adoption of IFRS and Implications of US-IFRS Convergence. In the first part, the report shows the definition of IFESs and the incentives of the convergence. The second part focuses on current developments in U.S. And the third part analyse the obstacles to U.S. adoption of IFRS in three aspects, cultural issue, regulatory issues and practical issues. Lastly, the report provides the likely implications that the US-IFRS convergence will exert on companies.
To sum up, this report aim to give corporations, especially with international operations, and detailed information about U.S IFRSs, to support the fast sustainable development in the future.
Table of Contents
Executive Summary1
Introduction3
1.0 Background Information3
2.0 Current Developments in U.S.4
3.0 Obstacles to U.S. adoption of IFRS5 3.1 Cultural Issues5 3.2 Regulatory Issues5 3.3 Practical Issues5
4.0 Implications of US-IFRS Convergence 6 4.1 Implications of US-IFRS on tax accounting methods6 4.2 Economic implications of US-IFRS convergence6 4.3 Implications of US-IFRS convergence on technology6
Conclusion7
References List8
Introduction
The IFRS Foundation is an independent, not-for-profit private sector organization working in the public interest, which are also responsible for safeguarding the independence of the IASB and ensuring the
References: In the 2008 roadmap, IFRSs was not developed as U.S. GAAP in certain areas. On August 27, 2008, the SEC laid out its proposal to eventually require all U.S However, in a recent study of 589 U.S. CFOs, only 14% stated that they are very familiar with IFRSs and fewer than 10% stated that they are prefer to file under IFRSs if given the choice (Duke, 2009). Darrell Sooy. 2008. “GAAP or IFRS.” Updated October, 2008. http://www.articlesbase.com/article-marketing-articles/gaap-or-ifrs-618150.html Duke University IFRS (International Financial Reporting Standards). 2012. Response to US SEC publication of staff report on IFRS.Accessed July 15, 2012. http://www.ifrs.org/Alerts/Governance/Pages/ResponseUSSECstaffreport.aspx Hail, Leuz and Wysocki Marie. 2011. “NY CPAs: IFRS Still Not Ready for the U.S.” Updated August, 2011. http://www3.cfo.com/article/2011/8/gaap-ifrs_ifrs-not-ready-for-the-us-says-new-york-state-society-of-certified-public-accountants McEnroe and Sullivan Wikipedia. 2012. "International Financial Reporting Standards." Last modified on April 24, 2012. http://en.wikipedia.org/wiki/International_Financial_Reporting_Standards