Preview

Ifrs Adoption in the U.S, Why the Postponement

Good Essays
Open Document
Open Document
2664 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ifrs Adoption in the U.S, Why the Postponement
IFRS ADOPTION IN THE U.S; WHY THE POSTPONEMENT
By Liu, Qun,Hiltebeitel, Kenneth

Monday, November 1 2010
Published on AllBusiness
In November 2008, the SEC proposed a "Roadmap for Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards [IFRS] by U.S. Issuers." The SEC road map detailed a process and a set of milestones by which certain larger public companies (those with a public float of at least $700 million) in the United States would transition from financial reporting based on U. S Generally Accepted Accounting Principles (GAAP) to that based on 3FRS beginning in 2014, with smaller public companies adopting IFRS in 2015 and 2016.
Based on the timeline contained in the proposed road map, if large public companies make their filings for 2014, they would be required to include balance sheets for December 31, 2013, and December 31, 2014, and income statements, cash flow statements, and statements of changes in stockholders' equity for the years ended on December 31, 2012, 2013, and 2014. In addition, the International Accounting Standards Board (IASB) requires companies adopting IFRS for the first time to present the beginning balance sheet as of the date of transition (i.e., January 1, 2012). Therefore, IFRS adoption by 2014 really means a transition starting as early as January 1, 2012. Is it possible?
After the SEC issued its proposed road map for public comment in November 2008, more than 200 comment letters were submitted from a wide variety of market participants, including those representing investors, regulators, issuers, accounting, legal, and other professions, as well as members of academia, standards setters, and international organizations. Those comment letters, along with survey results, could affect the SEC's decision regarding incorporating H7RS into the financial reporting system by 2014. On February 24, 2010, the SEC published a statement regarding feedback to the comment letters and
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Comparing IFRS to GAAP
    • 798 Words
    • 3 Pages

    Comparing IFRS to GAAP

    Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers . (2011). Retrieved from http://www.sec.gov/spotlight/globalaccountingstandards/ifrs-work-plan-paper-111611-gaap.pdf#page=26&zoom=page-fit,-126,792…

    • 798 Words
    • 3 Pages
    Better Essays
    Read More
  • Good Essays

    Week 2 Assignment Xuelian Li
    • 892 Words
    • 3 Pages

    Week 2 Assignment Xuelian Li

    The United Kingdom (UK) is an EU Member and adopted IFRS beginning 2005. As of 2011, public companies are required to use the IFRS for their consolidated accounts. Listed companies with no subsidiaries may continue to use UK GAAP. Companies with securities trading on a regulated market may use UK GAAP in preparing their company only financial statements. Other companies are also allowed to use the IFRS, but most choose not to do so, and continue to use the UK accounting standards largely developed prior to 2005. For medium-sized companies that are not public companies, the Accounting Standards Board has proposed replacing the UK's GAAP with the Financial Reporting Standard for Medium-sized Entities, which is based on the IFRS for Small and Medium-sized Entities. Companies deemed small may elect to report under the Financial Reporting Standard…

    • 892 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Comparing the Gaap and Ifrs
    • 1065 Words
    • 5 Pages

    Comparing the Gaap and Ifrs

    There have been proposals that have been working on with regard to the replacement of GAAP (Generally Accepted Accounting Principles) with IFRS (International Financial Reporting Standards) as used in the accounting and financial reporting aspects. Such convergence requires that the functions of the GAAP standards be added to the IFRS. The International Accounting Standards Board (IASB) developed the IFRS which is a less-detailed financial reporting system.…

    • 1065 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    ACC291 Learning Team A Assignment Nov 2
    • 1013 Words
    • 4 Pages

    ACC291 Learning Team A Assignment Nov 2

    In the United States, companies use an accounting method referred to as Generally Accepted Accounting Principles (GAAP). While the U.S. has structured GAAP to align all reporting for U.S. businesses, it is different from most other countries accounting standards. International Financial Reporting Standards (IFRS) is an accounting standard used in over 110 countries around the world (GAAP vs. IFRS, n.d.). With the Securities and Exchange Commission looking to move the U.S. accounting to the IFRS standards, understanding the differences is crucial. What follows is an overview of the differences between the two accounting standards, GAAP and IFRS.…

    • 1013 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    Ifrs vs Gaap
    • 1357 Words
    • 6 Pages

    Ifrs vs Gaap

    Over a decade ago, it was believed that the whole world would likely adopt the Generally Accepted Accounting Principles (GAAP). At the point in time, the International Financial reporting Standards (IFRS) was only about ten years old. In the last decade, the IFRS has been adopted in many growing countries. Currently, it is anticipated that the U.S. will converge its GAAP with the international IFRS, leaving behind only a modified IFRS. This may occur as early as 2014.…

    • 1357 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Comparing IFRS to GAAP
    • 889 Words
    • 3 Pages

    Comparing IFRS to GAAP

    In the Accounting industry, there are various principles and guidelines by which financial accountants, analysts, and organizations need to abide by. The International Accounting Standards Board (IASB) issues standards (IFRS) that have been adopted by the United States and several countries outside of the U.S. (Kimmel, Weygandt & Kieso, 2010). The IFRS along with Generally Accepted Accounting Principles (GAAP), professionals in the accounting industry use these guidelines as a baseline on which accounting practices are built upon. These standards are governed by the Securities and Exchange Commission (SEC) which ultimately oversees U.S. financial markets and accounting standard-setting bodies. Moving forward, the elements of IFRS and GAAP will be discussed to illustrate the similarities and differences and how it relates to Accounting and used in business practice.…

    • 889 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    U.S. GAAP vs IFRS
    • 3430 Words
    • 14 Pages

    U.S. GAAP vs 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.…

    • 3430 Words
    • 14 Pages
    Best Essays
    Read More
  • Powerful Essays

    Gaap vs Ifrs
    • 6672 Words
    • 27 Pages

    Gaap vs Ifrs

    The generally accepted accounting principal (GAAP) and international financial reporting standard (IFRS) are standards governing how economic events are reported. In the United States, the Securities and Exchange Commission (SEC) relies on the FASB, the accounting standard-setting body of the US, to develop accounting standards that public companies must follow when publishing financial statements. On the other hand, many countries outside of the Unite States have adopted the International Financial Reporting Standard (IFRS) which is issued by the International Accounting Standard Board (IASB). In recent years, the FASB and IASB have worked closely to try to minimize the differences in their standards and principals and to merge the two systems in the future.…

    • 6672 Words
    • 27 Pages
    Powerful Essays
    Read More
  • Better Essays

    Financial Statements Ifrs vs. Gaap
    • 1606 Words
    • 7 Pages

    Financial Statements Ifrs vs. Gaap

    For those in the business world, particularly in the accounting field, a major issue has surfaced in recent years relating to the differences between Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Currently, the majority of countries in the world follow International Financial Reporting Standards guidelines; however, the United States still uses GAAP. This topic has been a main focus because there is a plan for convergence between the two frameworks in the near future. The United States accounting system will undergo drastic changes when this occurs, but in the long-run the idea is to simplify the accounting procedures around the world. “Through these projects, some covering major components of the financial statements, the boards intend to improve financial reporting information for investors while also aligning US and international accounting standards. These projects are a significant move toward achieving a common accounting framework, a necessary step in the globalization of business and investment” (PriceWaterhouseCoopers LLP, 2011). The main difference between GAAP and IFRS is that GAAP is considerably rule-based, whereas IFRS is more principal-based which means IFRS has room for interpretation. The specific differences are far too many to cover in a short presentation, however, an explanation of some major differences are mentioned below.…

    • 1606 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Closed Adoption Research Paper
    • 695 Words
    • 3 Pages

    Closed Adoption Research Paper

    According to PBS, the US adopts more children than any other country (Liem, Opper, and Wang-Breal, 2010). As the numbers of adoptions in America continue to grow, it has become a more common topic of discussion, you may hear about it in…

    • 695 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    The Pros And Cons Of Close Adoption
    • 897 Words
    • 4 Pages

    The Pros And Cons Of Close Adoption

    Adoption over all is a wonderful option, but there are two distinct types a family should think about before going through with the process. Open adoption includes contact between the adoptive family and the birth parents. Closed adoption legally seals all records and cuts off contact between the two families (source 2). Closed adoption is also known as “traditional”. The birthparents and adoptive parents have no contact and there is little to no information exchange.…

    • 897 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Open Adoption Vs Closed Adoption
    • 1154 Words
    • 5 Pages

    Open Adoption Vs Closed Adoption

    The concept of adoption was not legally recognized in the United States until the 1850’s, with the inception of the first adoption laws. While transfers of children to substitute parents or now known as “adoptive parents” had occurred informally since American colonial times, adoption laws legitimized the informal adoptive arrangements which previously existed. There are now two different forms of adopting a child: open or closed adoptions. Although there are two options for adoption, all adoptions should be considered closed until an adoptee is 21.…

    • 1154 Words
    • 5 Pages
    Good Essays
    Read More
  • Best Essays

    International Adoption
    • 1992 Words
    • 8 Pages

    International Adoption

    Mohanty, J., Keokse, G. & Sales, E. (2006). Family cultural socialization, ethnic identity, and self-esteem: Web-based survey of international adult adoptees. Journal of Ethnic & Cultural Diversity in Social Work, 15(3/4), 153-172.…

    • 1992 Words
    • 8 Pages
    Best Essays
    Read More
  • Good Essays

    Domestic vs International Adoption
    • 1397 Words
    • 6 Pages

    Domestic vs International Adoption

    In today's society, the idea of adoption is an open and welcome one. However, the biggest decision in adoption today is whether to adopt domestically or internationally. There is a very large growing trend in international adoptions today. Compared to adoption rates in 1987, in 2004 international adoptions had risen over 200% as compared to an 8% rise in domestic adoptions. After World War II, international adoptions began to rise because Americans began adopting European and Japanese war orphans. However, this was not the only reason for international adoptions. Desperate poverty and social upheaval such as the one child law in China, are factors that have led others to adopt from Latin America and China. Also, after the Child Citizen Act of 2000, international adoptions became easier. This act allowed foreign-born adopted children to become automatic American citizens when they enter the U.S., eliminating the legal burden of naturalization. However, domestic adoptions have continued to be a steady way for many couples to adopt as well. There are many differences in international and domestic adoption and many factors to consider.…

    • 1397 Words
    • 6 Pages
    Good Essays
    Read More
  • Better Essays

    Adoption Process
    • 1120 Words
    • 5 Pages

    Adoption Process

    Adoption is metamorphosing into a radical new process that is both sweeping the nation and changing it. But this process is not an easy one, there are many steps to go through. Through research it is made a lot easier. Adoption is a also a highly visible example of a social institution that has benefits from and been reshaped by both the Internet and the exponential growth of alternative lifestyles, from single to transracial to gay. It is accelerating our transformation into a more multicultural society; even as it helps redefine out understanding of "family." The process includes three main steps including a type of adoption, the techniques for location a baby for adoption, arranging a successful adoption, the steps at the hospital, and lastly the legal issues in adoption.…

    • 1120 Words
    • 5 Pages
    Better Essays
    Read More

Related Topics