IFRS Isn't Coming . . . It's Already Here

Source: CPA Success

The road toward implementation of IFRS in the U.S. has been a bumpy one, leaving some people wondering whether we'll ever get there. But in a recent video interview, Peter Margaritas – a CPA and Business Learning Institute instructor – says that IFRS is already here. Regardless of whether the SEC mandates adoption of IFRS by U.S. companies, the international community is pressuring U.S. companies to conform to IFRS now in order to participate in cross-border transactions.

In terms of U.S. progress toward IFRS implementation, Margaritas believes it will happen, possibly in the manner outlined in a recent SEC staff paper. The paper describes a “condorsement” approach, under which FASB and the IASB would continue to work toward convergence of U.S. GAAP and IFRS. U.S. GAAP would be retained, administered by FASB, and after convergence newly issued or amended international standards would be incorporated into U.S. GAAP through an endorsement process.

Margaritas predicts that FASB and IASB will complete their major convergence projects by the end of 2011 and that the SEC will vote on the issue by the end of the year, with full implementation of IFRS over a five- to seven-year period. In the meantime, it's critical for those in the accounting profession to educate themselves about international standards.

For the full blog post and video, see “Is IFRS worth the effort in the U.S.?”

From CPA Success, the blog of the Maryland Association of CPAs, http://www.cpasuccess.com, July 5, 2011.