Where Does the Us Stand on the Adoption of Ifrs?

1371 Words Sep 27th, 2012 6 Pages
Report: Where does the US stand on the adoption of IFRS? - 2012
Abstract
The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have
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Nonetheless, in 2009, the IASB made it possible for its smaller private business constituents to present their financial statements using less rigorous standards compared to public companies (Samuel E. Johnson, 2011). This is largely based on the premises that smaller companies and their external users do not need the all-embracing disclosures in the financial statements.
Most private business owners have unlimited access to the day to day operation records of their companies. Additionally, it has been found that private companies have a costly yoke. They have to comply with US GAAP which is a pointless waste of resources (AuditWatch, 2010). While small business owners in the US are not able to use relaxed accounting standards as of yet, however, they may in the near future enjoy the same privileges as their “international” counterparts. In late 2011, the FASB commenced a project to examine whether there are any grounds to exempt non-public companies from providing disclosures pertaining to fair-value disclosures (Fair Value Project, 2011). Although it may seem like another dead-end with regard to the Little-GAAP vs. Big-GAAP issue, but it is a step in the right direction by the FASB to end this classic debate.
After their agreement in Norwalk, the two boards have met numerous times to reach convergence. Up to this point, both boards have been only somewhat successful and many milestones

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