20 May 5-1
Despite more the significant efforts toward converging the two sets of accounting standards, many differences still remain between U.S. GAAP and IFRS. The SEC has not truly acted on convergence in several years, so the future of convergence remains unclear. However, the SEC has promised it will ultimately make a determination in the not too distant future (Cohn, 2016).
The SEC currently allows corporations from other countries to use IFRS without reconciliation. There is no such option for U.S. companies, and a mandatory switch to IFRS is not likely to happen soon. However, IFRS information is increasingly important to many U.S. corporations as they engage in the global economy. U.S. corporations are engaged in cross-country transactions, own or manage foreign subsidiaries, participate in mergers & acquisitions, and otherwise report to foreign investors who prefer IFRS. Thus, to be successful in the US and foreign capital markets, it is increasingly important to provide information that satisfies both IFRS and US GAAP (PwC, 2015).
Due to the importance of providing useful information to a global audience, the SEC is considering regulatory changes that would make it possible for U.S. public companies to provide IFRS-based information as a supplement to U.S. GAAP financial statements. Under the proposal, domestic corporations would continue to provide U.S. GAAP financial statements, but would have the option of voluntarily providing supplemental information prepared in accordance with IFRS (Tysiac, 2015). I bring this up because one of the main sticking points for convergence was the treatment of Leases. Should we stick with GAAP? Converge with IFRS? Thoughts?
References:
Cohn, M. (2016, January). IFRS resurgent. Accounting Today, 30(1), 21-21,23. Retrieved from
http://search.proquest.com/docview/1755424114?accountid=35796
PriceWaterhouseCoopers (PwC). (2015, September). IFRS and US GAAP: Similarities and
differences. PwC. Retrieved from http://www.pwc.com/us/en/cfodirect/assets/pdf/accounting-guides/pwc-ifrs-us-gaap-similarities-and-differences-2015.pdf
Tysiac, K. (2015, December 9). SEC discussing supplementary IFRS option for US issuers.
Journal of Accountancy. Retrieved from http://www.journalofaccountancy.com/news/2015/dec/sec-discusses-ifrs-supplementary-option-201513518.html
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.