Perspectives on Eventual IFRS Adoption - （观点最终采用IFRS -）.pdf

Perspectives on Eventual IFRS Adoption Annette Or May 2012 Abstract Will the effects of eventual adoption of International Financial Reporting Standards (IFRS) be more positive or negative for practitioners and companies in the United States? How will IFRS affect stakeholders, including Chief Financial Officers (CFOs), investors, bankers, Chief Executive Officers (CEOs), chairmen, taxpayers, Certified Public Accountants (CPAs), and publicly traded companies? This paper will discuss the challenges faced, the opinions regarding the transition process, and the implications of IFRS implementation. Table of Contents Introduction 1 Benefits of IFRS Adoption 4 Drawbacks of IFRS Adoption 7 The Transition Process 10 Conclusion 13 Works Cited 15 Introduction International Financial Reporting Standards (IFRS or iGAAP), a set of accounting regulations, is becoming the global accounting standard for the preparation of public-company financial statements. “Today approximately 113 countries require or allow the use of IFRS for the preparation of financial statements by publicly held companies” (AICPA, 2008). These countries include European Union and Asia Pacific members, Canada, Korea, Brazil, Japan, and India (Leskela, 2009). From 2014 forward, many companies in the United States will face the challenges of converting financial statements from U.S. GAAP (Generally Accepted Accounting Principles) to IFRS. The Securities and Exchange Commission (SEC) has the primary role in the progress and development towards adoption, using the Financial Accounting Standards Board (FASB) to accomplish the implementation. In September 2002, the SEC announced its support of the Norwalk Agreement. This agreement was formed between the FASB and the Internati