Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Maybe adopting IFRS isn’t a foregone conclusion

with 2 comments

Perhaps it is because I’m attentive to the issue, but it seems doubts are spreading about the wisdom of adopting IFRS.

Rueters had this story: Analysis: Doubts emerge over U.S. move to global accounting

Key thread in this article: there isn’t, and won’t be, a uniform standard for all countries. 

Exactly.  That is a major concern for a lot of people.

Some of the choice comments:

In a staff paper in May, the SEC noted that very few countries adopted IFRS automatically without the right to approve the standards first, sometimes tailoring them to their own needs.

Right. Each country is approving those rules it likes and modifying the others. Furthermore, countries are often (usually?) reserving the right to approve future rules before implementing them. That means for all the turmoil and commotion, there won’t be a uniform global set of accounting rules.

The situation now is that

less than 16 percent of the world’s markets (are) using a pure version of IFRS as published by IASB.

An idea that seems to be emerging is moving US GAAP closer to IFRS by removing differences where possible. That approach would allow keeping those numerous parts of US GAAP that are the gold standard or that reflect the distinctive features of the US economy.

(P.S. Hat tip: Going Concern)

(P.P.S. Rueters article also mentioned in the CPA Letter Daily. Their headline: Some say IFRS is losing momentum in the U.S. Um. Yeah. Like hints from the SEC staff.)

Written by Jim Ulvog

July 26, 2011, 7:00 am at 7:00 am

Posted in Accounting

Tagged with ,

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  1. […] of my other posts are here, here, here, and here. Or use the search button on top right […]

  2. […] 7/26/11 Maybe adopting IFRS isn’t a foregone conclusion […]

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