IFRS

IFRS

ABSTRACT

For the past six years U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have cooperated on stepwise convergence to a lone set of economic describing standards. The method was initially envisioned to extend until U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) accomplish functional equivalence. Although the convergence method made some outcomes, it has furthermore verified to be slow and complicated. Therefore, most lately agreement in the United States has moved from the convergence in the direction of adoption of IFRS, and U.S. businesses may shortly be permitted or needed to report under the IFRS. The SEC 2007 Concept Release on Allowing U.S. Issuers to Prepare Financial Statements in Accordance with IFRS, presents a spectacular new idea the implementation of which must be mindfully considered. In the short period, the transition to IFRS in the United States will need important cost and effort. a set of standards would assist to boost comparability of financial data amidst all companies worldwide, and would encourage efficient and more cost-effective get access to capital markets. This paper discusses a present status of the convergence between IFRS and U.S. GAAP, likely modes of transition to IFRS, prerequisites for adoption of IFRS in the United States, and significances for various stakeholders. This paper should be of concern to accounting practitioner and academicians, as well as to any individual having an concern in the capital markets.

Table of Content

CHAPTER 14

INTRODUCTION4

Statement of the Problem4

Research Question4

Significance of the Study5

Design and Methodology5

Organization of Study5

Introduction6

LITERATURE REVIEW7

Chapter Overview7

Option 1 — Mutual acknowledgement for foreign filers only (with or without proceeded convergence)13

Option 2 — Mixed IFRS-U.S. GAAP regime for U.S. registrants (with or without proceeded convergence)14

Option 3 — Single set of high-quality worldwide economic describing measures for registrants (perhaps others)14

The FASB-ISAB Convergence Process15

Prerequisites For Adoption Of IFRS In The United States16

Organizational structure19

Implications Of The Proceed In The Direction Of IFRS In The United States19

The Impact on U.S. Private Companies19

Expected Impact on the Accounting Profession20

Other important differences23

Principles vs. Rules24

CHAPTER 325

STANDARDIZED ACCOUNTING (IFRS) AND U.S. COMPANIES25

Increasing Use Of IFRS25

Impact on U.S. Entities26

CHAPTER 429

SUMMARY AND CONCLUSION29

Conclusion29

The Acceptance of IFRS30

Why are the IASB and IFRS Important?30

Increasing Use Of IFRS31

Chapter Summary32

Adapting to change34

Recommendations37

CHAPTER 1

INTRODUCTION

Statement of the Problem

The non-standardization accounting of international cornerstone for international companies results in the need of accuracy, compatibility and consistency of financial statements, and improper conclusions for users counting on these financial statements for their buying into decisions.

Research Question

The reason of this research is to work out that if the IFRS standardized accounting values will assist U.S. companies advance financial describing and users of financial statements in producing significant investment decisions. To response this inquiry, this research must:

· Identify major difficulties resulting from non-standardization;

· Identify and interpret if causes of confusion results from non-standardized financial statements ;

· Explain if standardized accounting assists shareholders, and foreign investors for better buying into decisions;

· Identify if dangers of altering from GAAP to IFRS will determination investors confusion;

· Explain if IFRS will assist ...