Gwendolyn Mendoza ENC 1102 9 June 2014 BACKGROUND INFORMATION In 1963, the International Accounting Standards Committee introduced International Accounting Standards as a way to unify countries who conduct business together by comparable financial records. European Union United States SHOULD THE UNITED STATES PRACTICE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)? A CRITICAL VIEW ON THE IFRS • IFRS works well for larger corporations and not small businesses • Cost of Implementation • Definition of “Expenses” SUPPORT FOR THE IFRS • A shift from rule-based accounting system to a principle-based system • More investments from the investor center • Jobs already hiring people based on their knowledge of IFRS A DIFFERENT PERSPECTIVE ON IFRS • Only 23% of public companies in the United States when given the option to file IFRS do so. • IFRS is not a good choice for the United States because it is not well written for the American economy • International Treaty as an option to replace IFRS YES, THE UNITED STATES SHOULD ADOPT IFRS Investors have better information to make better decisions Company has more investments Makes innovative products and services Company makes more revenue YES, THE UNITED STATES SHOULD ADOPT IFRS United States $17.5 China $10 Japan $4.8 Germany $3.9 *GDP AMOUNTS ARE IN TRILLIONS WORKS CITED Isidro, H. Institutional Investors’ Reaction to SEC Concerns about IFRS and US GAAP Reporting. Journal of Business Finance & Accounting, 796-841. Kaya, D., & Pillhofer, J. A. (2013). Potential Adoption of IFRS by the United States: ACritical View. Accounting Horizons, 27(2), 271-299 Moqbel, M., Charoensukmongkol, P., & Bakay, A. Are U.S. academics and professionals ready for IFRS? An explanation using technology acceptance model and theory of planned behavior . Journal of International Business Research, 12, 47-60. Mohr, A. (n.d.). International Financial Reporting Standards - Advantages & Disadvantages. Small Business. Rapoport, M. (2011, July 6). U.S. Firms Clash Over Accounting Rules. The Wall Street Journal. Retrieved May 22, 2014, from http://online.wsj.com/news articles/SB1000 Should the U.S. adopt IFRS? (n.d.). The Premier Online Debate Website. Retrieved June 8, 2014, from http://www.debate.org/opinions should-the-u-s-adopt-ifrs