Bridging The Great Divide : The Merger Of The Financial Accounting Standards Board

Before deciding to fully adopt IFRSS, in 1996, the AASB issued Policy Statement 6 International Harmonization Policy with objective to ‘pursue the

In September 2002 the IASB and the FASB agreed to work together, in consultation with other national and regional bodies, to remove the differences between international standards and US GAAP. (Dorata, 2008) However, the convergence of IFRS and FASB is coming to the end. (Golden, 2013)

IFRS’s are a single set of accounting standards at a global level for all sectors. Accounting standards are trustworthy statements is the reflection of financial statements to be presented to the stakeholders . United kingdom has already adopted IFRS since 2005.I would be discussing on adoption of IFRS by United kingdom for this paper. The United

All of the other countries, Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, turkey, and United Kingdom use have been required to use IFRS or standards that may differ from IFRA to a degree.

It has been in deliberation to whether all countries in the world would subject their accounting system under IFRS. As of 2013, there are more than 120 countries around the world necessitate or permit the use of IFRS. These efforts of convergence are to initialize the transparency and uniformity of accounting principles.

It has been shown through several studies that there is a link between the success of IFRS to enforcement mechanisms. Barth et al. (2008) assumes that without the existence of effective enforcement mechanisms, such as IFRS, you cannot achieve success.

International Reporting Standards (IFRS) are standards that are aimed as a global language that is common for affairs of business, to make sure that the accounts of the company can be understood and are of a certain standard that applies worldwide. IFRS are

In 2001, The International Accounting Standards Board (IASB) was established to develop the International Financial Reporting Standard (IFRS). ). The first IFRS was issued in 2003 and European Union (EU) members committed for requesting all listing company to apply the IFRS in their jurisdictions and will effective on year 2005 (Brussels, 2000).

IFRS is a set of accounting standards promulgated by the International Accounting Standards Board (IASB), an international standard-setting body based in London. It was designed as a common global language for business affairs so that company accounts are comparable and understandable across international boundaries (Ghosh, 2010). In June 2002, the European Union (EU) adopted an IAS Regulation requiring European companies listed in an EU/European Economic Area (EEA) securities market to prepare their consolidated financial statements in accordance with IFRS starting in 2005 (United Kingdom).

Additionally, there will be a need for a global security force to apprehend offenders of the new standards. This could be a controversial problem in itself. The main issue, is to establish the standards first and get every public trading company to buy in on the idea of implementing the standards. Currently, many countries have agreed to adhere to the international standards. As more countries are adopting the IFRS, the U.S. has yet to agree to the standards. Even though the GAAP and IFRS resembles closely, there are still some issues to be worked out (Street, 2012). Eventually the U.S. will agree to the terms of the IFRS, once all the terms and conditions are in balance (Zeff,

Pace University | ACC 649 Contemporary Accounting Issues FALL 2016 | 70159 | Instructor: Dr. Kwang-Hyun Chung Research Proposal: Will the transition from U. S. GAAP to IFRS only have an effect on Financial Reporting? Abstract: The purpose of this research is to analyze if the transition from Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) in the United States only has an effect on financial reporting. Throughout this paper, I will explain the advantages and disadvantages of adopting IFRS. Also, I will also identify the differences between both standards and how it affects other aspects of a company’s business operations. In essence, reporting under IFRS has its pros and cons but it is ultimately up to the Securities and Exchange Committee to fully implement what standard they want to U.S businesses to follow. Prepared by: Sharon Williams Introduction Over the last several years, the controversy of the United States adopting International Financial Reporting Standards (IFRS) has been a significant issue for many businesses who are pro Generally Accepted Accounting Principles (GAAP). Although U.S GAAP has been the common accounting principles for many countries, specifically the US, now countries are adopting IFRS. In addition, there are many organizations such as European Union (EU) and International Accounting Standards Committee (IASC), who want domestic and international businesses to have one

The Financial Accounting Standards Board (FASB) established the United States’ Generally Accepted Accounting Principles (GAAP) which have been used in US corporations for over 75 years. The purpose of having these principles allows financial statements from businesses to be compared truthfully and professionally. It also serves as a standard for accountants to follow. There is talk of the United States no longer following the principles of GAAP and adopting the International Financial Reporting Standards (IFRS). By adapting to the international standards there will be a better opportunity for continuity between businesses in foreign countries and the United States. GAAP only pertains to the United States’ financial

On February 24, the SEC unanimously agreed to publish a statement of continued support for a single set of high-quality global accounting standards. The SEC acknowledged that IFRS is best positioned to be the global standard. Even without a set conversion timeline from the SEC, IFRS has been affecting

The Norwalk Agreement, first announced on September of 2002, was a paramount step towards a unified global accounting standard. In this document, both U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Boards (IASB) (the Boards) “each acknowledge their commitments to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting.” (MoU Progress Report, 2008) In 2006, and subsequently updated in 2008, the boards agreed on a Memorandum of Understanding (MoU) which detailed the short and long-term

The transition to the International Financial Reporting Standards (IFRS) has not been the easiest. Some counties have faced challenges. One big challenge is that not all countries have adopted IFRS. India, Japan and the US are top economic countries that have yet to embrace IFRS. If