This website uses cookies to ensure you have the best experience. Learn more

Impact Of The Adoption Of Ifrs On Accounting In Usa

542 words - 3 pages

Impacts of the adoption of IFRS on accounting in US.
As globalization becomes popular in the world, the global accounting standard for the business enterprises which are globally operating should have to be developed. International Financial Reporting Standards, IFRS, would solve this issue for the global businesses to have a clear, accurate and consistent common set of accounting reporting standards. There are more than 100 countries that have adopted the IFRS including the European Union. The convergence of IFRS on accounting in the US would have several impacts from various points of view ranging from the technology system to tax reporting. Computerized accounting systems, accounting professions, audit report preparers, management personnel, business owners, investors, tax authorities, and litigation and regulatory issues are the main concerns of this convergence process.
...view middle of the document...

This impact would be affected by fair and equitable experts.
Furthermore, financial statement presentation has a huge impact on preparers such as accounting personnel and auditors. Audit firms must be educated prior to providing training and consulting service to their clients. This factor has an impact on financial statement users such as management, board of directors, internal audit personnel, shareholders, investors and government authorities. The interpretation of the IFRS financial statements is critical to the stakeholders.
In addition, there would be significant business and operational implications that may require excessive time and human resources during the interim transition period. Training and educating is necessary for all businesses. Upgrading the computerized accounting software is also mandatory. These could cost a business a considerable amount of money in the short-run. Multinational corporations would be saving money in the long-run when they cut down from three financial reports to two or one.
Moreover, businesses have to be aware of economic impacts which can financially affect a business in either a positive or negative manner. Businesses may gain economic benefits on overseas markets due to having international accounting standards. This helps growing businesses to extend their market share globally. These changes of accounting reporting standards could also impact litigation and regulatory point of view for taxation purposes.
On top of above mentioned impacts, US businesses have some doubts about adopting the IFRS. Firstly, it is questionable that International Accounting Standards Board (IASB) would become a potentially dangerous monopoly if the US switches to IFRS from US GAAP. Secondly, would the US’s power over accounting diminish? Thirdly, is IASB ready to take charge of a global accounting network? Lastly, US businesses wonder if IASB could maintain the quality and has resources to do so.
In conclusion, implications of the convergence of IFRS on accounting are related to not only just accounting but also other factors.

Other Essays Like Impact of the Adoption of Ifrs on Accounting in Usa

the presidents of the usa Essay

473 words - 2 pages George WashingtonWon unanimouslyFirst president to be inauguratedAdded so help me god to inauguration speechCame up with the title Mr. PresidentGets poisoned possibly anthraxVery tallAthleticHis horse was named nelsonWent to every state in the new unionGood at interior designing, fashionGood judge of characterHired very smart, well educated people into his cabinetHamilton was in charge of the money and created bankWashington has capitol named

Effects of Technology on the Accounting Profession

989 words - 4 pages Effects of Technology on the Accounting Profession ACC Effects of Technology on the Accounting Profession Information systems are changing many aspects of business, especially in accounting. Accounting information systems (AIS) affect various aspects of the profession including: Financial Accounting, Managerial Accounting, Auditing, and Taxation. New technologies have made it much easier in many cases to accomplish tasks that

Retiring Outside of the Usa

2462 words - 10 pages capital cities of each country. This idea was inspired when I when I came across an article on Costa Rica and how it used to be a destination for retirees. Costa Rica was the first country to make a concerted effort to attract foreign retirees with a program of special benefits. Its pensionado program was responsible for bringing tens of thousands of foreign retirees, mostly Americans, to the country in the 1980s and 1990s. While the

Harmonization of Ifrs (Aasb 107)

1524 words - 7 pages Accounting standards are the product of modernization which initially becomes the rules and regulations to govern the way in preparing financial statements. In these days, International Financial Reporting Standards (IFRS) are widely implemented, yet the underlying accounting practices are still unstandardized due to various factors of economic and cultural differences, just to name a few. In 2010, proposals were issued in Australia and New

The Impact Of The Environment On Health

834 words - 4 pages . The acknowledgement of the health and environment affects the air pollutants. The pollution has both chronic and acute effects on our health, and affects many of our systems and organs. The health consequences of lower levels of pollution have been more difficult to decide. The first cause is that people differ in response to the environment and the toxics. When we are exposed to the different conditions caused by the environment, the

The Impact of Globalisation on Multinational Companies

3257 words - 14 pages in 2013, is now in 195 countries and has more than 30,000 restaurants. This process, because it is difficult to control, some multinational companies responsible for the operation of globalization, it is obvious that there are a variety tasking do it. On the other hand, there are also negative effects of globalization has overshadowed a number of advantages. An example of this is the positive impact on economic development and the more general

The Impact Of Changing Technology On The Everyday Life Of Australians In The Post-War Period

924 words - 4 pages Outline the impact of changing technology on the everyday life of Australians in the post-war period The changing technology in housing in the post-war period such as the introduction of new, more efficient designs that focused on functionality and minimal details improved the Australian way of life. The use of these designs made housing affordable for lower-class families. The new designs also persuaded Australians to reject conservative

Negative Impact Of Humans On The Environment

1694 words - 7 pages The Impact of Humans on the Environment The human population on the planet now tallies in at over 6 billion. Many experts believe this population may double in the next half-century, as expressed in A Special Moment in History by Bill McKibben. Humans are undoubtedly the 'rulers' of this earth, but we have not been good rulers. In fact in our years of monumental growth as a species, our relationship to our kingdom, the

The Impact Of Liberalism On International Relations

2052 words - 9 pages this (Mingst, 2008). This was probably the beginning of a coherent belief in a sort of union of sovereign states. Toward the end of the seventeenth century William Penn believed a ‘diet’ (parliament) could be set up in Europe, like the European Union of today (Baylis and Smith, 2001). We can see much of this liberal thinking today in organizations such as the United Nations. Another influential work to have an impact on liberal thinking was

Impact of the Internet on Education

658 words - 3 pages , the internet offers some new methods of plagiarism. Students can download free resources and turn in assignments without citations; they can even acquire online writing services by simply purchasing them and hand in papers as their own. The result is that students remember the easy and quick way of finding out what they need on the internet only, but spend less time on thinking independently. Over time, students’ thinking patterns can be

The Impact of Divorce on Children

1258 words - 6 pages well, adults have the means and ability to seek outside professional assistance independently. Children on the other hand, are not as likely to have the ability to identify the source or kind of turmoil they are experiencing. Therefore, it is difficult for us, as adults, to be fully aware of the consequences of divorce on our children. It is estimated that nearly one half of children born today will spend time in a single parent household

Related Papers

Suncor And The Adoption Of Ifrs

4049 words - 17 pages Abstract This research paper analyses the impact of Suncor’s transition from Canadian GAAP to IFRS. Suncor is a leading Canadian fully integrated company in the oil and gas industry and is listed on the TSX and NYSE. The analysis will reveal extent to which the qualitative characteristics of the Conceptual Framework for Financial Reporting, i.e. understandability, comparability, reliability and relevance, are affected by this transition in

Ifrs And Fasb Comparison On Accounting Errors

1207 words - 5 pages and errors, there are some differences. One difference concerns the addressing of indirect effects to the change in accounting principles. An indirect effect is any change to current or future cash flows of a company that result from making a change in accounting principle that is applied retrospectively. GAAP has a detailed guidance on these effects. IFRS does not specifically address the accounting and reporting for indirect effects of

The Importance Of Accounting Theory In The Field Of Accounting

1912 words - 8 pages role accounting plays in our economic society, which is characterized by a self-regulated market that operates through the forces of supply and demand. The role of accounting is to report how organizations or companies use those scarce resources and on the status or resources and claims to resources. Because accountings have to report these organizations, the reports are done in a formal way called financial statements. The financial statements

The Effects Of Technology On Accounting

777 words - 4 pages the face of accounting over the last fifty years. It is unclear whether technology’s has an impact on accounting which can be interpret as being positive and negative. It is clear that technology has changed the accounting period. Some of the impacts of technology are either positive or negative which are simply changes, The impacts of technology on accounting field has been positive, negative and neutral, but the impact results cause an demand