This website uses cookies to ensure you have the best experience. Learn more

Sec Accept Ifrs? Essay

1356 words - 6 pages

The Security and Exchange Commission’s debate over whether to accept the International Financial Reporting Standards as an alternative to the United States’ Generally Accepted Accounting Principles remains undecided. In February 2010, the SEC generated an IFRS Work Plan in order to promote the development of a single set of high-quality, globally accepted accounting standards. The Work Plan consists of six key areas. The first of these focus on the ability of IFRS to be comprehended, to be consistent, and to be enforced; it is referred to as “sufficient development and application of IFRS for the U.S. domestic reporting system.” The second, “the independence of standard setting for the ...view middle of the document...

S. issuers an option to adopt IFRS as issued by the International Accounting Standards Board” (www.aicpa.org). In a recent AICPA IFRS readiness survey, seventy nine percent of CPAs have a basic knowledge of IFRS, meaning an adjustment would not be as difficult as if no knowledge existed (www.aicpa.org).
Given the efforts thus far from SEC staff, it is evident that the SEC will eventually accept IFRS. The SEC released Commission Statement in Support of Convergence and Global Accounting Standards, stating the continuing effort in support of a single set of accounting standards. The Final Staff Report on the Work Plan was released on July 13, 2012, but did not address any final conclusion on incorporating IFRS in the U.S (www.ifrs.com).
In a study conducted by PwC in 2011, 50% of respondents claimed they “already report on IFRS (e.g., non-US based companies or subsidiaries of non-US companies), are currently using IFRS for non-US subsidiaries, or are in the process of transitioning certain subsidiaries to IFRS” (www.pwc.com). The SEC is pressured to act soon as many companies currently are facing transition issues as a result of IFRS adoption in other countries throughout the world, and through “merger and acquisition activity, business dealings with customers and vendors reporting under IFRS, and subsidiaries with public reporting requirements” (www.pwc.com). Already about one hundred twenty nations worldwide primarily use IFRS and to compete with competitors internationally, it is becoming more and more necessary to use IFRS for easier comparisons (www.ifrs.com). The use of IFRS may be advantageous to companies wishing to raise foreign capital or to start subsidiaries abroad. Others argue that the U.S. GAAP should be maintained due to its guidance to standard setters and rule-based nature (McGraw Hill).
IFRS does seem to do a better job than U.S. GAAP in terms of some inconsistencies. Under IFRS for recording depreciation, “separate significant components of property, plant, and equipment with different economic lives” must be recorded and depreciated separately. This guidance requires a review of “residual values and useful lives at each balance sheet date” (www.pwc.com). U.S. GAAP, on the other hand, allows for a more aggregated analysis of depreciation. The component approach, used by IFRS, allows for more visibility and insight into individual property, plant, and equipment components. IFRS also may present expenses “based on their nature rather than their function” within the entity (www.pwc.com). Further disclosures are used to discuss the function of the expense, as this is necessary for predicting future cash flows. In this way, more information is displayed under IFRS for expenses—they are expressed by nature, but explained further by function. The income statement under GAAP may be either single-step or multiple-step, but IFRS requires single-step. This may not necessarily be better than GAAP because it includes irregular or...

Other Papers Like Sec- Accept Ifrs?

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages incidents. Early hate crime legislation did not clearly define and identify a hate crime because the Title 18 USC. Sec. 245. 13 did not mention sexual orientation. It was not until the Title 28 USC.Sec. 534. 31 were ratified that the Federal legislators they mentioned sexual orientation in there, and later on Obama will sign a law that will expand the protection group. Lots of hate crime legislation are unequally applied because some people suffer

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages and that their worth as a person is based on their actions, to rational beliefs, thus producing rational behaviors and emotions. The therapist will also strive to teach Sarah unconditional acceptance of others, unconditional self-acceptance, and high frustration tolerance (Murdock, 2009). Additionally, Sarah must accept that she, not others, is responsible for her thoughts, feelings, and actions, be able to identify and see her thoughts, feelings

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages ; Cuba is known for its police force violating the constitution. Many prisoners accept the fact that sending someone straight to jail is the norm. The right to property threatened Cuban government. There is a limited amount of how much you can make. The police take property without warrants just because they want it. One way Cuba is threatening to destroy the right to property by limiting the amount Cubans can make for exampledoctors, engineers and

Related Essays

Will There Be One Set Of Accounting Standards In Use Throughout The World In The Next Five Years?

662 words - 3 pages world will be using one set of accounting rules. The eventual implementation of IFRS by all countries is expected to be market driven. Recently an associate of the S.E.C., Kathleen L. Casey, said in a speech that “the commission should move promptly to accept the international standards, investors would benefit from accounting standards that provide investors with highly comparable, decision-useful information about businesses without regard to

Pros And Cons Of Gaap And Ifrs Convergence

803 words - 4 pages increasing desire of cross-border investing have made it apparent that the U.S.accounting standards known as the Generally Accepted Accounting Principles (GAAP) issued by the Financial Accounting Standards Board (FASB) can no longer remain separate from IFRS. Under the request of the Securities and Exchange Commission (SEC), FASB and IASB signed the Norwalk Agreement, which promised the convergence of GAAP and IFRS by as early as 2015. As a

Accounting Theory Essay

3026 words - 13 pages financial statements and public accounting firms was shaken, due to the fact that the United States had always used rules-based accounting standards to provide a greater amount of detail and compliance to the Securities Exchange Commission (SEC). Rules-based accounting standards are governed by the Financial Accounting Standards Board (FASB) which primarily uses a GAAP accounting versus the International Accounting Standard Board (IASB) that uses

Business And Management Essay

3465 words - 14 pages successful one. In this case I used my knowledge gaining at the time of my graduation. While making this report I came across many experiences and I used all of my experience in making the report. Despite several constraints, I gave my all efforts to make this report a meaningful one. I hope you will get the report as informative and accept my report. Sincerely yours, Acknowledgement At the very beginning of my report, I would