Most companies in the United States use a set of accounting standards (called US Generally Accepted Accounting Principles or US GAAP) to do their accounting. There are thousands of pages of accounting guidance under US GAAP and plenty of problems, some would argue.
It is very possible that the United States will change accounting standards in the near future (within the next 5-10 years) to International Financial Reporting Standards (IFRS). In fact, the US Securities and Exchange Commission (SEC) is currently working with the creators of IFRS to narrow the differences between US GAAP and IFRS. The SEC is very seriously contemplating changing the accounting standards in the United States from US GAAP to IFRS. This would mean that an international body would be responsible for setting accounting standards for all countries which use IFRS as its accounting standard (over 100 countries currently use all or parts of IFRS as their accounting standard).
So, here is my question to all you readers: If the United States decides to switch accounting standards from US GAAP to IFRS, how would it affect your life, if at all?
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I have no clue what kind of changes would happen in my life if the US switched accounting standards. Can you fill me in? If it involves having other countries exercise more control over US practices, that doesn't sound good to me.
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Well for me working in finance it would affect my work. I would need to learn the new standards. Im sure this would be the same for you but more so. I like the idea of the US being standard with other countries so things are the same across the board.
ReplyDeleteI don't know. I think accounting is for people who are good at algorithms. and that is not me. :D I'm glad there are people like you around John. If we move to CA will you teach me to surf?
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