A 2016 article by Alison Parker, CPA and Cheryl Hartfield, CPA, both executive editors of PPC products for the Tax Accounting business of Thomson Reuters reflects on the arguments for and against US companies following International Financial Reporting Standards rather than US GAAP Two of the arguments both for and against this development are as follows Arguments for IFRS provides a single global accounting language The US is currently well represented in the IFRS standard setting process with three seats on the 14 member IASB (trustee) Arguments against Principles based standards with a lack of industry specific or transactional guidance may decrease the quality and consistency of reporting The IFRS standard setting process is potentially subject to influence by political forces, which could lead to conflicts and inconsistent practices between jurisdictions Required Discuss whether the publication of the revised Framework by the IASB in March 2018 will be likely to persuade US standard setters that following IFRS would lead to financial reporting of sufficient quality and rigour

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Posted on Oct 06, 2024

A 2016 article by Alison Parker, CPA and Cheryl Hartfield, CPA, both executive editors of PPC products for the Tax & Accounting business of Thomson

A 2016 article by Alison Parker, CPA and Cheryl Hartfield, CPA, both executive editors of PPC products for the Tax & Accounting business of Thomson Reuters reflects on the arguments for and against US companies following International Financial Reporting Standards rather than US GAAP. Two of the arguments both for and against this development are as follows:

Arguments for

IFRS provides a single global accounting language.
The US is currently well-represented in the IFRS standard-setting process with three seats on the 14-member IASB. (trustee)

Arguments against

Principles-based standards with a lack of industry-specific or transactional guidance may decrease the quality and consistency of reporting. -
The IFRS standard-setting process is potentially subject to influence by political forces, which could lead to conflicts and inconsistent practices between jurisdictions.

Required:

Discuss whether the publication of the revised Framework by the IASB in March 2018 will be likely to persuade US standard setters that following IFRS would lead to financial reporting of sufficient quality and rigour.