International Accounting

In: Business and Management

Submitted By cde1
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International Financial Reporting Standards
Colin Erskine
DU- Accounting 301
03/13/2014

International Financial Reporting Standards “Over the last decade, progress has been made to harmonize financial accounting standards and practices into one set of single standards to be implemented by businesses domestically and internationally” (Harper, A. Leatherbury, L. Machuca, A. Phillips, J.).
There has been some controversy among accounting professionals regarding the impact that switching to International Financial Reporting Standards (IFRS) from Generally Accepted Accounting Principles (GAAP) will have on United States corporations and investors. On November 14, 2008 there was a proposal that was later made mandatory, issued by the SEC making corporations within the United States switch to International Financial Reporting Standards for fiscal years ending after 2014. There are many disadvantages and advantages that could arise when moving to a global set of standards. International Financial Reporting Standards are a set of international accounting standards, which state how transactions and other events should be reported within financial statements. These standards are becoming the global standard for the preparation of public companies financial statements. “Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports. Other countries, including Canada and Korea, are expected to transition to IFRS by 2011. Mexico will require IFRS for all listed companies starting in 2012. Japan has introduced a roadmap for adoption that it will decide on in 2012 (with a proposed adoption date of 2015 or 2016) and is permitting certain qualifying domestic…...

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