Ifrs Adoption Challenges : Ifrs

755 Words Aug 10th, 2014 4 Pages
IFRS Adoption Challenges
When it comes to IFRS adoption challenges our research has shown that, while the U.S. adoption of IFRS may bring many benefits, several challenges must first be overcome. Some of the most notable of these challenges include the Security Exchange Commission’s apparent diminishing support, the sheer cost of implementation for corporations, overcoming the belief that IFRS adoption would sacrifice the “gold standard” of U.S. GAAP, and a lack of enforcement.
The SEC drafted its new strategic plan for the next 4 years in February 2014. In doing so, it appeared to be backing away from its earlier plan to support IFRS (Chasan, 2014). This becomes evident by contrasting the SEC’s 2010-2015 plan with its new plan. The 2010-2015 plan reads:
The agency will promote high-quality financial reporting worldwide through, among other things, support for a single set of high-quality global accounting standards and promotion of the ongoing convergence initiatives between the FASB and the International Accounting Standards Board.
Conversely, the SEC’s most recent plan states:
The agency will work to promote higher quality financial reporting worldwide and will consider, among other things, whether a single set of high-quality global accounting standards is achievable.
Clearly, the SEC’s priorities have changed regarding IFRS adoption.
Not only is there waning support for IFRS from the SEC, there is also considerable opposition from corporations that would be affected by…
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