IFRS Debate Continues: Centre for the Study of Financial Innovation Holds Roundtable on IFRS
International financial experts came together at a roundtable to discuss and debate the future of global standards and the likelihood of a truly comparable set of rules such as the International Financial Reporting Standards (IFRS). A recap of the discussion was published in Accountancy Age.
The group discussed whether the promise of global accounting standards can truly be kept. Some experts argued that regional interpretation by different countries would be acceptable as different countries move towards the standards. Others voiced concerns that too much interpretation would dilute the purpose of the standards and IFRS brand.
The U.S. Securities and Exchange Commission (SEC) is slated to make a final decision on whether the U.S. should adopt the whole or portions of IFRS by the end of the year.
Whether or not the SEC decides to adopt IFRS, in part or in whole, it is possible that GAAP will be altered in some way as a result of this debate to more closely match the international standards.
IFRS requires that a company’s balance sheet recognize all allowable assets and liabilities under IFRS reporting standards, re-classify items that were previously classified under GAAP, and apply IFRS standards when measuring the value of all assets, which requires a certified appraisal.
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By: Present Value
Additional Reading:
AICPA Survey Shows that U.S. Accountants Have Some Knowledge of IFRS
Debate Continues About Whether or Not the U.S. Should Adopt IFRS
SEC Releases Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP