The Importance Of The International Financial Reporting Standards

1060 Words 5 Pages
IFRS status according to the SEC The International Financial Reporting Standards, also known as IFRS, are a set of accounting principles that are used globally. They were created by IASB, the Independent Accounting Standard-Setting Body. Over the past several years, the U.S. Security and Exchange Commission, also known as the SEC, has provided information and commented on whether or not investors and issuers of financial statements should use International Financial Reporting Standards to prepare their financial statements. In 2008, the SEC stated “International Financial Reporting Standards could be used by U.S. companies by early 2014.” (White, "Speech by SEC Staff: IFRS and U.S. Companies: A Look Ahead", 2008). The Security and Exchanged …show more content…
The SEC has announced, as of 2015, there has been no support for U.S. issuers to adopt the IFRS principles. (White, "Speech by SEC Staff: IFRS and U.S. Companies: A Look Ahead", 2008). For this very reason, the SEC took it as a sign that they should stick to U.S. GAAP for issuers and not adopt IFRS. Even though there has been no support to switch to IFRS, the SEC still believes that IFRS principles are the key to increasing capital flow and help fix the current standard problems we are …show more content…
companies adopt International Financial Reporting Standards, IFRS, or Generally Accepted Accounting Principles, GAAP, is an ongoing controversy. Both of these are currently being used throughout the U.S. I think that by having one set of accounting standards, it would greatly benefit the users and issuers not only in the U.S. but globally. Having a system that uses ‘International’ accounting principles, seems to make sense. The U.S. should adopt these standards. I understand the resistance to change, as with anything, people are scared of change and how costly it might be to implement that change. If this is something believed to help companies and their investors with comparability, consistency, and efficiency; why wouldn’t people want this

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