UNITED STATES’ ADOPTION OF IFRS

By: Chris Smith, Rocio Hernandez, & Seong Ug In

Meet Ian Franklin Roosevelt Samuels

He entered college the Fall of 2007 (before SEC’s proposed adoption)

He attended a University where there was no incorporation of IFRS in his accounting education

Ian graduates this May

The Securities & Exchange Commission

Milestones to be overcome to help with the adaption Improvements in Accounting

Standards FASB and ISAB 

Accountability and Funding of the IACS Foundation 

Improvements in the ability to use Interactive Data for IFRS Reporting

Education and Training Big Four Accounting Firms

Securities and Exchange Commission

Securities and Exchange Commission

Limited Early use of IFRS where this would Enhance Comparability for U.S. Investors Top 20  

Anticipating Timing of Future Rulemaking by the Commission Reviews 

Implementation of the Mandatory use of IFRS Amendments to Regulations Proposals to the Early use of IFRS 

One Proposal having the ability to revert back to U.S. GAAP 

U.S. Companies & Businesses

U.S. Companies & Businesses We can estimate the converging cost from

experience of Europe companies. The Institute of Chartered Accountants in England and Wales estimates that European companies with 500 million Euros and 5 billion Euros spent 0.05 percent of their revenue to switch their accounting standards to IFRS.

After convergence, multinational firms do not have to prepare two financial statements. They can save their time and money for preparing just one financial statement.

Business & Accounting Professors

Should be incorporated at introductory level of accounting

Should be incorporated at intermediate and advanced levels

Business & Accounting Professors

Having a hard time developing curriculum

Lack of support from administration in regard to training

A Short Review

Businesses are ready to begin reporting according to IFRS, however the SEC is delaying the ability for companies to do that

The SEC wants to ensure an easy transition to IFRS for US companies and is therefore willing to take the time necessary to guarantee it’ll work

Business and accounting professors are not ready to incorporate IFRS into the curriculum because of