U.S. GAAP vs IFRS
Unit 9 Project: The U.S. Should Not Abandon U.S. GAAP to Adopt to IFRS
Amethyst McMillian
Kaplan University
CM220-42
Professor Manning
October 1, 2013
U.S. Adopting IFRS
The United States is coarsely going through a big dilemma. It is deciding whether to adopt International Financial Reporting Standards (IFRS), or to stay with the current U.S Generally Accepted Accounting Principles (GAAP). Since this is such a serious decision, now would be an opportune time to take a look at what the advantages and disadvantages would be of switching to the new way of financial reporting, and doing so, shows the beliefs of the costs being too high to adopt a new set of reporting standards. People who support switching from GAAP to IFRS argue that IFRS will offer a general reporting language and consistent financial reporting for companies with global operations to make financial reporting more meaningful across borders. And. Supporters also believe that one common reporting system will cut costs for companies and make it easier for investors to compare the financial statements of companies from different countries (Diamond and Herrmann, August 2008). From the problem that the switch to IFRS would be exceedingly costly, to the fact that IFRS leaves more room for interpretation and lacks bright line rules, I will discuss all the reasons why switching to IFRS soon would not be the right decision for the U.S.
Purpose
The firmness of purpose for this essay is to look at the pros and cons that can occur if the United States were to change by reversal their business enterprise coverage cubic content unit from U.S Collection to IFRS. My analysis will focus on the dispute between IFRS and U.S GAAP, the cost it would take to go through a new fit of reporting standards, the education and training disruption, and the advantages vs. the disfavor of adopting IFRS.
Distinguishing between IFRS and U.S. GAAP The Reference of Businesses
Amethyst McMillian
Kaplan University
CM220-42
Professor Manning
October 1, 2013
U.S. Adopting IFRS
The United States is coarsely going through a big dilemma. It is deciding whether to adopt International Financial Reporting Standards (IFRS), or to stay with the current U.S Generally Accepted Accounting Principles (GAAP). Since this is such a serious decision, now would be an opportune time to take a look at what the advantages and disadvantages would be of switching to the new way of financial reporting, and doing so, shows the beliefs of the costs being too high to adopt a new set of reporting standards. People who support switching from GAAP to IFRS argue that IFRS will offer a general reporting language and consistent financial reporting for companies with global operations to make financial reporting more meaningful across borders. And. Supporters also believe that one common reporting system will cut costs for companies and make it easier for investors to compare the financial statements of companies from different countries (Diamond and Herrmann, August 2008). From the problem that the switch to IFRS would be exceedingly costly, to the fact that IFRS leaves more room for interpretation and lacks bright line rules, I will discuss all the reasons why switching to IFRS soon would not be the right decision for the U.S.
Purpose
The firmness of purpose for this essay is to look at the pros and cons that can occur if the United States were to change by reversal their business enterprise coverage cubic content unit from U.S Collection to IFRS. My analysis will focus on the dispute between IFRS and U.S GAAP, the cost it would take to go through a new fit of reporting standards, the education and training disruption, and the advantages vs. the disfavor of adopting IFRS.
Distinguishing between IFRS and U.S. GAAP The Reference of Businesses
References: Albrecht, David (2008, October 01). Benefits and Costs to U.S. Adoption IFRS. Retrieved from: http://www.profalbrecht.wordpress.com/2008/10/01/benefits-and-costs-to us-adoption-of-ifrs/html. [Last Accessed 17 November 08]. Bahnson, Paul R and Paul B.W Cox, Christopher (2008 November 18). Speech by SEC Chairman: ‘The Future of International Standards and Cooperation In Light of the Credit Crisis’. Retrieved from: http://www.sec.gov/news/speech/2008/spch111808cc.html. [Last Accessed 23 November 2008]. Crawford, Krysten (2005 September 25). Ebbers gets 25 years. Retrieved from: http://www.money.cnn.com/2005/07/13/news/newsmakers/ebbers_sentence. Diamond, Marc and George Hermann (2008) IFRS-vs-U.S.GAAP. Accounting and Fraud. (2013 May 5). Fraud in the Business World. Retrieved from http://www.securitieslawfirms.com/fiduciaryresponsibility/accounting-fraud.html. Johnson, Sarah and Leone, Marie Leader, Nicholas (2012, April 16). Does IFRS Belong in the United States? Retrieved from http://www.usc.edu/org/InsightBusiness/ib/articles/articlescontent/09%2001Nicholas%20Leader.html. Libby, Robert: Brown, Timothy (2013, March). Financial Statement Disaggregation Decisions and Auditor 's to tolerance for Misstatement. Vol. 88, Issue (2), pp.p641-665. 25p. 6 charts Title. 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. Taub, Scott (2007). IFRS and GAAP: The Good and the Bad. Compliance Week, 25 September. Retrieved from http://www.complianceweek.com/article/3642/ifrs-and-gaap-the-good-and-the-bad,html. [Last Accessed 17 November 2008.] Top Ten Reasons Why U.S Zayas, Yaritza (2013 April). IFRS vs. U.S. GAAP. Retrieved from http://www.ezinearticles.com.