The U.S. and Adoption of IFRS

Subject: Politics & Government
Pages: 1
Words: 272
Reading time:
< 1 min

The United States will accept IFRS because of its well-built moral tradition and its long-standing intolerance for unethical conduct. Its economic and financial principles have been applied by other nations as a benchmark to assess their economic and accounting success until lately. The United States must lead in adhering to international standards. The majority of multinationals may shortly be obligated to report in several accounting standards in the event that the United States does not either adopt or approach IFRS. Applying more than one standard of accounting only heightens reporting and auditing expenses and presents no benefit to any nation. Over a hundred nations have adopted or are in the process of adopting International Financial Reporting Standards.

Postponements in accepting IFRS by the United States will make transnational corporations report their financial transactions in International Financial Reporting Standards, leading to parallel reports in the country’s GAAP. This will result in more auditing costs and potential inaccuracies. The United States should adopt the IFRS guidelines as a subject of importance. Due to the growing number of nations adopting IFRS guidelines, it would be in the best interests of the United States to adopt the same accounting standards. The majority of United States corporations will gain from one set of reporting guidelines because they are international firms operating internationally. The adoption of IFRS will facilitate easy regulation and monitoring of their branches in overseas nations and attain cost savings measures as opposed to using several reporting standards. Adoption of IFRS will as well assist eradicate possible financial misinterpretations and making investment decisions simpler.