U.S. adoption of global accounting standards would be intended to create a level global playing field, but within U.S. borders, its benefits would differ dramatically from company to company.
David McCann, CFO.com | US
November 20, 2009
IFRS is too relaxed in their reporting and with the current economy, although it may be beneficial to some companies, I believe will only tend to mask the truth of how a company is really performing. This type of reporting can tend to create monopolies within the US borders. GAAP has been the backbone to businesses being truthful about their receivables. IFRS will only make this reporting more relaxed and allow companies to mask the truth of their assets. The IFRS is only an open invitation to move more and more of our business to a foreign location. The IFRS although may appear to look good on the outside, in the end will hurt the US economy. IFRS is the first step to bringing the world into a financial unity that is one step short of bringing our currency into a unified value system.
Posted by Yolanda Torres | November 23, 2009 12:28 pm
This is a boon to the larger accounting firms. Outside of that, it's a boon...doogle to the rest. The sooner this nonsense is put to rest and the FASB gets it's collective act together completing it's rewrite, perhaps amending a few so they become understandable, we'll all be better off. And just who does the IFRS implementation benefit in capital markets anyway? I thought the US market was really the only one that mattered anyway...
Posted by Thomas Tone | November 20, 2009 04:49 pm
Many people only see the positives of IFRS. I have asked many times, how is IFRS going to increase comparability when EVERY country has their own "carve-outs," or versions to IFRS? Even if there were truly one set of standards that every country had to abide by, comparability would still be hindered by the new "professional judgment" idea. If one auditor in one country implements a standard using his professional judgment, and I implement it in my country using my professional judgment, how comparable can the resulting financial statements be?
Posted by John Schmidlin | November 20, 2009 04:08 pm
Great article. I am hopeful that by the time IFRS becomes mandatory, they will have ironed out the wrinkles so that it can be beneficial for all required companies. Obviously there is considerable scale difference between the Davey Tree Expert Company and Tyco. The ultimate goal is accurate financial reporting, with transparency into the financial reporting process.
Posted by Steven Randall | November 20, 2009 02:14 pm© CFO Publishing Corporation 2009. All rights reserved.