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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

The issue of adoption of international financial reporting standards (IFRSS) in Australia has been controversial issue since the first time Australian Financial Reporting council (FRC) announced the policy in 2002. Many believe that IFRSS adoption will lead to great advantages such as enhance financial report comparability, improve quality of financial reporting, attract more foreign investor, and other significant advantages. However, some also believe that the adoption merely result in disadvantages and cost for Australian business, accounting profession and even Australian government.

SEC will not require American companies follow IFRS at least until 2015. If they follow IFRS, accounting could become simpler and more flexible since the guidance of IFRS. (Frye, 2009) The foundation of IASB and the time of responses is questioned by a report from SEC. It also address it will be costly if American public companies adopt IFRS. (Rehm, 2011)

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

The U.S is moving toward IFRS (Forgeas, 2008). In the near future, all US company may need to report financial statements under IFRS. This makes the adaptation of IFRS unavoidable. Recently, some large multinational

In November 14, 2011, IASB and FASB issued for public comment a revised draft standard to improve and converge the financial reporting requirements of IFRS and GAAP for revenue and some related cost from contracts with customers.

With the growth of international business there is a need to standardize financial statements globally. Presently there are “approximately 120 foreign private issuers currently that report to the Commission using IFRS financial statements.” By standardizing accounting practices investors will be able to make informed decisions based on comparability and accuracy of financial statements. The SEC released this statement in 2008, “We believe that IFRS has the potential to best provide the common platform on which companies can report and investors can compare financial information.” The SEC has created a “Roadmap” or plan to convert US GAAP over to IFRS. According to The Committee of

The U.S., despite a strong initial reluctance to adopt the new standards, are currently working toward a convergence of U.S. GAAP and IFRS. The SEC recently approved 2015 as the earliest

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.

Based on my research regarding the United Kingdom, U.S. SEC should mandate adopt IFRS. U.S. and U.K are two largest stock markets. The world’s capital markets know no borders. The participants in these markets need high-quality, transparent, and comparable financial information to enable them to make sound

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 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:

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.

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

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.