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Ifrs: a Review of the Literature

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Ifrs: a Review of the Literature
Running head: IFRS

IFRS: A Review of the Literature
Intermediate Accounting III (10089)

Abstract

Due to the global integration of business and finance throughout the world, approximately 113 countries have adopted or are working on convergence with IFRS. This paper is a look at the history and an examination of where IFRS stands internationally and with the United States. For several decades the industrialized world has been working toward an international set of accounting standards. Since IFRS has become the de facto international accounting language, it is logical that it will be accepted as that standard in the near future.

IFRS: A Review of the Literature

Over the past 35 years financial regulators worldwide have proposed and worked toward establishing an international standard of financial reporting. The need for such a standard has never been disputed but how to adopt has been the question. More than 100 countries have already adopted or converged with IFRS. The United States is still using Generally Accepted Accounting Principles (GAAP). James Turley, chairman and CEO of Earnest and Young states, ”In the last 18 months, we relearned how globally connected we all have become… It is absolutely imperative to have one global standard”. (cited in Money Management Executive, 2009). Examining the progress of establishing IFRS as the global standard requires the study of its history, convergence and adoption level of other countries and confirmation of need.
History
International Financial Reporting Standards (IFRS) are principal based standards that are issued by the International Accounting Standards Board (IASB). IFRS include International Accounting Standards (IAS) that were issued between 1973 and 2001 by the International Accounting Standards Committee (IASC). In April of 2001 the IASB took over the responsibility for setting International Accounting Standards.
The International Accounting Standards Board website has provided a timeline of the


References: AcSB On track for adding IFRS to Handbook. CA Magazine, 142 (9), 14. Retrieved November 28, 2009 from Business Source Premier database. Deloitte, (2009). Technically Speaking Quarterly Newsletter. Retrieved November 28, 2009 from the World Wide Web http://www.Iasplus.com/country/safrica.htm Gill, L. (2007). IFRS: Coming to America, Journal of Accountancy, 203 (6), 70-73. Retrieved November 17, 2009 from Business Source Premier database. Heffes, E. (2009). Sir David Tweedie asks: What 's the U.S. Going to do about IFRS? Financial Executive 25(9), 14-15. Retrieved November 29, 2009 from Business Source Premier database. International Accounting Standards Board History (n.d.). Retrieved November 28, 2009 from http://www.archive.isab.org.uk/about/history.asp Langmead, J., & Soroosh, J. (2009). Planning ahead for IFRS 1.CPA Journal, 79(10), 24-29 Retrieved October 31, 2009 from Business Source Premier database. Morgan, J. (2009). World awaits action on accounting standards. Money Management Executive, 17(37), 1-9. Retrieved October 31, 2009 from Business Source Premier database. Nobes, C., & Zeff, S. (2008). Auditors ' affirmations of compliance with IFRS around the world: An exploratory study. Accounting Perspectives,7(4), 279-292. Retrieved November 17, 2009 from Business Source Premiere Database. Pricewaterhouse Coopers. (2008-2009). IFRS adoption by country. Retrieved November 28, 2009 from http://www.pwc.com/us/en/issues/ifrsreporting/countryadoption/index.html
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