My Account on accounting - Gwendolyn Mendoza's E-Portfolio

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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
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