The Dark Side of Global Accounting Standards

Expect loose standard-setting in the oil and gas industries and a ton of litigation if convergence hurtles down its current track, critics say.

David M. Katz, CFO.com | US
November 14, 2007

GLOBAL ACCOUNTING WILL WEAKEN THE CAPITAL MARKETS The PCAOB member is absolutely correct. The rush to international standards is definitely politically motivated

GLOBAL ACCOUNTING WILL WEAKEN THE CAPITAL MARKETS The PCAOB member is absolutely correct. The rush to international standards is definitely politically motivated

Posted by Robert Ang | September 10, 2008 01:42 pm

GAAP is better?

The comment that GAAP is older than IFRS is incorrect. IFRS, like GAAP, has evolved over years from English accounting standards established in the 19th century. While it is true that the US legal system is going to be a problem the comment that it will expose flaws in IFRS is the wrong way around; the flaws lie in the US legal system. Principles based accounting is better than rules based which is a system that only an accountant could love. However, at the end of the day, both standards fall far short of a cash flow statement in helping investors decide the value of a company.

Posted by Richard Bassett | November 15, 2007 12:36 pm