Which IFRS Should the United States Adopt?

Authors

  • George Schmidt University of Arkansas Fort Smith
  • Kaitlyn Schoeppey University of Arkansas - Fort Smith

Keywords:

IFRS, GAAP

Abstract

  Abstract

Accounting is a byproduct of its environment. It takes information and transmits it for users that are both internal and external to the company. The United States has been working to converge with IFRS since the Norwalk Agreement in 2002.  These environmental factors have caused different accounting standards to develop in different countries. The International Financial Reporting Standards (IFRS) were developed to address the differences in accounting standards worldwide. However problems persist with IFRS. Comparability even within countries that use IFRS is not perfect. Many countries use a local variation of IFRS. In addition, the European Union has a formal endorsement process for every IFRS standard published by the IASB to decide if the EU will adopt the standard. In addition to the political pressure this causes, it could cause further problems with comparability in the future if the United States adopt IFRS. The fundamental rules vs. principles debate and the cost of conversion to IFRS for US companies is also a barrier to the convergence project.

Author Biographies

George Schmidt, University of Arkansas Fort Smith

Dr. George Schmidt, Ph.D. is an associate professor of accounting at the University of Arkansas - Fort Smith, where he teaches Tax, Intermediate Accounting II and Accounting Information systems. He received his doctorate from the University of North Texas and his primary research interests are in the financial and informatioln systems.

Kaitlyn Schoeppey, University of Arkansas - Fort Smith

Kaitlyn Schoeppey is a graduate from the University of Arkansas - Fort Smith

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Published

2016-12-31

Issue

Vol. 7 No. 1 (2016)

Section

ABR Journal Articles

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