U.S. Unlikely to Move to IFRS
In an article published on August 10, 2015, FASB Chairman Russell Golden stated that “… it has become increasingly clear that the United States is unlikely to adopt IFRS.”
While the FASB has not given up on the concept of global standards, there is little to no support from U.S. constituents, who are concerned about likely variations in how standards are applied and enforced primarily due to legal, regulatory and cultural differences between jurisdictions. The SEC has seen a lack of support for mandating the use of International Financial reporting Standards (IFRS), as well as for providing U.S. companies with the option to use IFRS.
This lack of interest from US stakeholders has not stopped the FASB from continuing with their efforts to develop global accounting standards with the fewest possible differences. Increased globalization with standards that are more comparable is expected to:
- Make it easier for financial statement users to efficiently and rationally allocate their capital, and;
- Reduce costs for preparers and auditors of financial statements.
The FASB and the International Accounting Standards Board (IASB) have converged on several major standards including ones that cover revenue recognition and fair value measurements.
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Written by alexandra-loppnow