During the past decade, there have been increasing discussions between the Financial Accounting Standard Board (FASB) and the International Accounting Standard Board (IASB) regarding the harmonization of United States Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS). What used to be talk is now becoming a reality. On October 29, 2002 FASB and the International Accounting Standards Board (IASB) released the Memorandum of Understanding, which announced the significant steps that are being taken to converge the US and the International Accounting Standards. There are hopes for some parts of the convergence to be finalized by 2011, but in some areas it is still to be determined. This pending change in the United States (US) raises many important questions and concerns for companies currently using US GAAP for financial reporting. What are the differences between US GAAP and the IFRS? How will this change affect US firms? Many accounting professionals are not familiar with the differences between US GAAP and IFRS, and firms are starting to struggle with the technical and system changes needed to adopt IFRS. In addition, what are the implications to current accounting students?
Our World Flipped Upside Down.
Undergraduate Review, 5, 144-149.
Available at: http://vc.bridgew.edu/undergrad_rev/vol5/iss1/29
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