GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed

US decision could make or break IFRS

Tuesday 23 August 2011 - by Andrew Hickley

A refusal by US authorities to adopt worldwide accounting standards could kill off the "dream" of uniform worldwide standards, the Institute of Chartered Accountants in England and Wales has warned.

Writing for Global Financial Strategy, the body's executive directive warns that critical decisions in both Japan and India on whether to adopt the IFRS standards could be swayed if America is reluctant to embrace IFRS.

Asian nations are "sitting on the fence" towards adoption, Robert Hodgkinson argues, meaning that the Securities and Exchange Commission's decision on whether to adopt the standards has become "critical" to achieving a single model for worlwide accounting.

Japan has indicated it will decide whether to adopt the accounting standards in 2012. However the European Commission recently warned that India's planned adoption is veering off-course due to a number of conflicts and carve-outs.

"For the world's largest capital market to decide to adopt IFRS would clearly have a profound effect on the global financial reporting environment, especially if that decision were to prompt Japan - another significant global capital market - to do likewise," Hodgkinson writes.


"If the US and Japan do not join 'the IFRS family' and with large countries such as India deciding to adapt rather than adopt IFRS, the dream of a single global accounting language may remain just that."

To read the article in full, please click here.


WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

READERS' COMMENTS
2011-09-15 03:05:02 | Glory
EXCELLENT ARTICLE
2011-08-28 19:41:37 | Anonymous
Interesting perspective.
2011-08-28 19:39:35 | Anonymous
Interesting information.
2011-08-24 17:48:16 | Florida CPA
There are many of us CPAs (and AICPA members) that do not want to adopt IFRS and hope the SEC does NOT adopt IFRS! I am personally very tired of the AICPA trying to shove this down my throat too. It seems the AICPA "leadership" have their own agenda and don't care if the membership agree. With the AICPA now accepting non CPA members we have lost some of our credibility and the AICPA no longer is an organization for CPAs. This action and the AICPA endorsement of IFRS adoption, and the huge sum of money the AICPA spends to advocate its IFRS position, is pure arrogance on the part of AICPA "leadership" and needs to stop. I'm doing all I can to make sure the US of A does NOT adopt IFRS and I urge my professional colleagues to join me in my efforts. Call and write your Congressman and senators and urge them to pressure the SEC to not adopt IFRS.
2011-08-24 15:25:39 | Robert Boos
It all depends on whose ox gets gored by the IFRS adoption. If an enterprise's financial statements will look worse under IFRS, they're surely going to resist its adoption.
2011-08-24 13:41:31 | jack egan
I favor US agreeing to abide by IFRS protocol & standards. I have not read related articles as to pro's & con's of membership so lack knowledge. But I favor all countries being on same standard

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don't know

View results

FIND A REGION world regions