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In May 2011, the IASB issued IFRS 10, Consolidated Financial Statements, which replaced IAS 27 and SIC 12. IFRS 10 is effective for annual periods beginning on or after January 1, 2013. Early application is permitted under specific circumstances. Under IFRS 10, control is

UK’s IFRSs are designed to make it easier to compare the performance of organizations in different countries, rather than each country maintaining its own GAAP, which makes such comparisons difficult. All listed EU companies have been required to use IFRSs since 2005. The adoption of IFRSs by the private sector is expected to have various benefits for both companies and investors; including (1) UK’s IFRSs will remove the need for companies with foreign subsidiaries to translate the accounts for consolidation with the parent company accounts. Also (2) it will be easier for investors to make informed decisions about the performance of companies in different countries because of the increased transparency and a better understanding of financial statements.

The SEC has several aspects to consider when it comes to the adoption of IFRS in the United States. First, the SEC should consider the overall costs impact this will have on businesses. It is likely that it would cost billions of dollars in new reporting expenses for U.S corporations to implement IFRS. It would also require accounting firms to vastly change their education requirements. Second, the SEC’s main job is to protect investors from fraud on public exchanges. The commission must determine whether IFRS does a better job of protecting investors from unlawful activity.

Due to the controversy economies have had towards which method to use for accounting, there has been a compromise to converge the two most commonly used methods – GAAP and IFRS. However, these two methods are still very different. The convergence project has yet to be completed; in the meantime, more and more countries are running towards the IFRS since it is more reliable and relevant. The main difference between these two methods is the US GAAP is rule-based while the IFRS is principle-based; this means that the US GAAP makes its decisions based on research and literature, while the IFRS bases its decisions on patterns that result in facts. A deeper look into the differences between these two methodologies shows

Over the last decade, the way in which financial reporting is carried out has seen some significant advancements. One of the most momentous changes has been the introduction of International Financial Reporting Standards (IFRS), which have been adopted broadly throughout the world, with one major exception, the United States. Before accounting standards can be considered truly global, this exception has to be resolved. The prospect of such an occurrence took massive strides in 2002, when the Financial Accounting Standards Board (FASB); responsible for standard-setting in the US, announced their intention to work alongside the IASB in order to converge IFRS with US GAAP. For the first time, a truly global set of accounting standards seemed a

The International Financial Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan, Canada, and other world economic leaders. The IFRS is based on the tenets of understandability, reliability, and comparability. It is based off the International Accounting Standards (IAS) and had the opportunity to be built from accounting ideas and principles used across the world. In recent years it also has had the chance to look at the United States Generally Accepted Accounting Principles (GAAP) and modify the rules to enhance clarity and consistency, intentionally setting itself apart from U.S.

global standard allows them to operate in a single accounting environment worldwide (PricewaterhouseCoopers 2007). The globally positive attitude towards an convergence to IFRS is exemplified by an IFAC survey among

International Financial Reporting Standards (IFRS) are an international set of accounting standards. Early in the 21st century, the Australian Accounting Standards board, with guidance from the Financial Reporting Council (FRC), decided to implement IFRS’s throughout Australia. This decision was made so that Australia could participate and contribute to the development of a distinct set of accounting standards that could be used all around the world.

With complete notion and awareness of how each country has their set of rules, “the goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements” (Rouse, 2011). This view is meant to provide general guidelines, as well as international comparisons through conventional and edifying means. To bring broader and vivid objectives, IFRS replaced IAS, the older standards, in order to bring a more comprehensive and simplified accounting procedures.

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).

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:

IFRS 3-1 describe some of the issues the SEC must consider in deciding whether the United States should adopt

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

Investing in today’s rapidly emerging markets, one must be aware of the world’s two main accounting systems. The International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) are two essential accounting systems of the globe. Although several countries like the United States have their own accounting systems, most conform to one main one. The Security and Exchange Commission is looking to shift to the IFRS by the end of 2015. The GAAP and IFRS are primary accounting systems which share several aspects in common however they also differ in several ways which may impact the results.

The talks about convergence began in 2002 between the International Financial Standards Board and the Financial Accounting Standards Board. In 2005, the Security and Exchange Commission acknowledged that the day would come when the International Financial Standards would take precedence over the United States GAAP. In the year 2007, it was decided that foreign companies would have the ability to file financial statements in the United States without reconciling the statements to the United States GAAP. This statement modeled the first step for the United States toward accepting the International Accounting Standards. This changeover would give professionals and the Security and Exchange Commission time to inspect the financial statements in respect to the International Accounting Standards and with the Generally Accepted Accounting Standards. After this moment in time, the Security and Exchange Commission issued a road map to present a blueprint of how the convergence would take place. It stated that in between the years of 2009 through 2010, a Security and Exchange Commission staff work plan would be developed to work on the substantive details of the convergence plan (“2015-IFRS in the,” 2014). In the middle of development a Security and Exchange Commission policy statement would be issued to announce more understanding of the IFRS and how it will replace the Generally