IFRS for U.S. Companies

Abstract

Growing acceptance of the International Financial Reporting Standards (IFRS) worldwide and recent actions of the Securities Exchange Commission (SEC) indicate that IFRS could soon become a body of accounting principles generally accepted in the United States of America (U.S.). It is, therefore, very crucial that investors, preparers, auditors, educators and regulators are aware of how this imminent change would affect them. This commentary article addresses this timely issue by critically examining: (1) potential benefits of allowing U.S. firms to adopt IFRS, (2) necessary changes related to the IASB and IFRS, and (3) necessary changes to the U.S. financial reporting infrastructure. It also raises specific concerns that the SEC should consider.