The SEC may decide soon whether and when U.S. companies will switch to international accounting standards. And it's a good thing, as panic from not knowing the date is percolating.
Scott Leibs, CFO Magazine
July 15, 2008
You've failed to describe the opportunity cost of not changing in comparison to all of the re-education and training required to switch. Without having exact figures, I'm inclined to believe that we can absorb the cost to retrain in IFRS. On the contrary, U.S. companies cannot afford to carry the burden of GAAP and remain competitive in the global market. Especially in high technology industry, GAAP has much greater negative externalities compared to IFRS to the extent of driving poor business decisions so that the decisions that are made fit neat and tidy into GAAP. At the end of the day, the customers lose out because companies think first about how to account for services and not about what is the best service they can provide. Commence re-education, re-training.
Posted by Timothy Sipe | July 15, 2008 12:09 pm© CFO Publishing Corporation 2009. All rights reserved.