Thanks for the Comments

Hi everyone, thanks for the comments. In response to my own question, it's rather difficult to tell what the effect of a change in accounting standards will be on the average person's life. I know that in the financial world, there will be plenty of changes. First, if the US switches to IFRS, we are all going to need to learn International Financial Reporting Standards (IFRS). This could take a lot of work. Although IFRS is pretty close to US Generally Accepted Accounting Principles (US GAAP), there are still some significant differences (such as accounting for Research and Development costs). Learning and implementing new standards will cost a lot of money and take a lot of time. Those costs may get passed on to consumers in the form of increased commodity prices, although the amount may not be significant, if it gets passed on at all.

Second, financial markets might also face challenges as they adjust to new standards. There might be a steep learning curve with investment firms and brokers as we all try to make informed decisions with new accounting standards. What this effect will be on the stock market, mutual funds, and other investment tools, I don't know.

Third, the switch to IFRS would start with the largest firms, first. In fact, starting this year, some of the largest world companies based in the US can file their accounting reports with the Securities and Exchange Commission according to IFRS standards instead of US GAAP standards. We'll see how many chose to do that. Anyways, the transition would start with the largest companies first and then progress through to smaller companies throughout the next few years. Privately held companies and small business probably wouldn't be required to do their accounting according to IFRS (as of right now), just as they are not required to account under US GAAP. However, banks and investors might start asking for accounting records under IFRS when smaller businesses go to get loans.

So, while a switch might be a lot more work for some of us (like me), a switch might not mean as much to the general public until a few years later. But, by then, there will hopefully be a lot more knowledge and a lot more resources to help people make any necessary changes. As far as tax implications . . . that's a little more difficult to say. I don't think there will be significant changes for the average person, but for companies, it will definitely be a hot topic if the switch is made to IFRS.

For more information, here are a few helpful links:

International Accounting Standards Board (the ones who create and maintain IFRS):
www.iasb.org

The SEC's publications on IFRS:
Commission Statement in Support of Convergence and Global Accounting Standards (Feb 24, 2010)
Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers (Nov 14, 2008)

Additional Resources:
AICPA's IFRS Website
KPMG's IFRS Website
(Google-ing "IFRS" will give you plenty of resources)