IFRS: A Report on the Roadmap and Roadblocks to Implementation in the U.S. and Abroad

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The International Financial Reporting Standards: A Report on the Roadmap and Roadblocks to Implementation in the US and Abroad Robert B. Shaw Term Paper Prof. Paul Strohmenger GBA 521 - 002 Financial Accounting and Reporting Fall Semester - December 2010 2) how is it progressing? 3) how does it differ from GAAP? 4) will it be implemented & how? The International Financial Reporting Standards, otherwise widely known as the IFRS, are a set of high quality financial reporting standards that are designed to be used globally by profit making enterprises. The continuous development of such international standards is an example of the international harmonization witnessed in the global financial sector over…show more content…
Some of the additional benefits are specific to certain groups. The capital markets will benefit from enhanced world wide comparability for investors and more efficient capital allocation. In addition, foreign investors will perceive enhanced credibility of local market entities while US securities will be suitable for foreign listings. Finally, the IFRS will eliminate the need to develop and maintain national standards. On the other hand, the benefits to companies include easier consolidation and cross-border acquisitions and increases the overall understanding of the financial statements of overseas suppliers, customers, vendors, and subsidiaries. However, though the benefits seems very clear to the global financial community, there seems to be an apparent hesitation on the part of the US to adopt or immediately identify specific intent to implement IFRS. The notion is that IFRS doesn 't have strong guidance and will lead to further chaos. Especially, if it is accepted in haste. (www.bcbs.org) In relation to the progression of acceptance abroad there is a stark contrast between those who support IFRS and those who do not. Since 2000, with the creation of the IASB and its takeover from its predecessor, the acceptance of these standards saw a substantial increase in its use, especially by European countries. Switzerland was one of

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