more-arw search

IFRS and Big Bang

Groups are debating the best way to adopt IFRS.

The Association of Certified Chartered Accountants (ACCA), recently chimed in on the debate over whether to adopt the International Financial Reporting Standard in the United States. In a letter to the Securities and Exchange Commission, the group argues that to institute a universal set of standards would be "in line with the trend of globalization in business and commerce, and will facilitate international trade and a transfer of skills."

Because of that, the group wants the SEC to immediately give U.S. issuers the choice to submit financial statements that comply with IFRS.

However, not everyone is on board with doing away with the Generally Accepted Accounting Principles - the current standard to which financial statements submitted in the U.S. must conform.

The head of financial reporting at the ICAEW, Dr. Nigel Sleigh-Johnson, told Accountancy Age that if the SEC decides to adopt IFRS, it would be better to just make the switch quickly, rather than through a slow transition from GAAP to IFRS. The latter, he said, has the potential to "result in a rather incoherent and complex accounting framework."