The Security Exchange Commission (SEC) has taken a big step when declaring that they will “decide to decide” by 2016 whether the U.S. Financial Accounting Standards Board (FASB) will merge its Generally Accepted Accounting Principles (GAAP) with the International Financial Reporting Standards (IFRS).
A recent report indicated once again that the SEC has still not decided. It continues to research and outline the arguments for and against the adoption. It should be noted that the two standards are more alike than they are different. However, there are a few areas of dispute that the SEC claims “are not supported by the vast majority of participants in the U.S. capital markets” (AccountingToday).
It seems evident that with today’s global markets that the U.S. should get on board with the accounting standards used by more than 170 countries in the world. I appreciate that the SEC and FASB are being cautious and doing good research, but how long should it take? Let us know what you think about the adoption of the international accounting standards.
You can read more about the update in AccountingToday, found at http://www.accountingtoday.com/news/SEC-IFRS-Office-Chief-Accountant-Work-Plan-adoption-convergence-IASB-63305-1.html?ET=webcpa:e2711:209776a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=WebCPA_Daily_071312