International Financial Reporting Standards (IFRS) has been affecting US companies for some time, whether through their business dealings with non-US counterparties (particularly with customers and vendors), or through their non-US subsidiaries’ adoption of IFRS.
Soon US companies will also feel the effect of IFRS here at home as key components of US GAAP and IFRS converge. The changes will be many, and swift in coming.
To keep pace with them, companies need to start preparing now. Due to the specialized nature of US GAAP guidance for A&D companies, there may be complex considerations in successfully implementing converged standards and ultimately transitioning to IFRS.