International Financial Reporting Standards (IFRS), the framework used by most of the world today, has growing support in the US. So much so, in fact, that within a few years the SEC may designate a date for mandatory adoption of IFRS by all US public companies. When IFRS conversion comes, it will be beneficial for a number of reasons. It would promote the global competitiveness of US companies, strengthen US capital markets, facilitate the management of US-based global companies, achieve significant cost savings and process efficiencies, and overcome the burdensome complexity of today's US accounting and reporting. We favor all of these things. The question is, will your company benefit early from this change or scramble to meet the challenge?
Highlights:
Expect a shift in the US to International Financial Reporting Standards.
The option for US companies to apply IFRS should come sooner rather than later, with a mandatory conversion date in the not-too-distant future.
Use of globally accepted standards will increase the competitiveness of US capital markets by removing barriers.
