The International Accounting Standards Board (IASB) has achieved “almost” worldwide acceptance and...

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The International Accounting Standards Board (IASB) has achieved “almost” worldwide acceptance and adoption of its precious and hard-delivered (that is, more than 30 years in the making) “baby”—International Financial Reporting Standards (IFRS), a comprehensive set of financial reporting standards. However, that “almost” is a very significant one: the US, the largest capital market in the world, is still reluctant to fully incorporate IFRS into its financial reporting system, despite the recognition of IFRS on all continents during the last ten years (Bogopolsky, 2015).  Reference: Bogopolsky, A XXXXXXXXXXDoes IFRS have a future in the US? IFAC. (Available at: https://www.ifac.org/global-knowledge-gateway/business-reporting/discussion/does-ifrs-have-future-us).  Required: Critically discuss the above statement. Why is the United States still reluctant to fully adopt IFRS for its financial reporting practices? Provide your arguments.  Note 1: Word limit for Question is 600 Note 2: Professional marks will be awarded for format, clarity and expression. Note 3: The presentation of Question 1 should include Introduction, Discussion, Conclusion and List of references.  Due date: 19th September 3:00 pm
	
Document Preview: The International Accounting Standards Board (IASB) has achieved “almost” worldwide acceptance and adoption of its precious and hard-delivered (that is, more than 30 years in the making) “baby”— HYPERLINK "http://www.ifrs.org/IFRSs/Pages/IFRS.aspx" 	 "_blank" International Financial Reporting Standards (IFRS), a comprehensive set of financial reporting standards. However, that “almost” is a very significant one: the US, the largest capital market in the world, is still reluctant to fully incorporate IFRS into its financial reporting system, despite the recognition of IFRS on all continents during the last ten years ( HYPERLINK "https://www.ifac.org/global-knowledge-gateway/author?author=42221" Bogopolsky, 2015).Reference:  HYPERLINK "https://www.ifac.org/global-knowledge-gateway/author?author=42221" Bogopolsky, A XXXXXXXXXXDoes IFRS have a future in the US? IFAC. (Available at: https://www.ifac.org/global-knowledge-gateway/business-reporting/discussion/does-ifrs-have-future-us).Required:Critically discuss the above statement. Why is the United States still reluctant to fully adopt IFRS for its financial reporting practices? Provide your arguments.Note 1: Word limit for Question is 600Note 2: Professional marks will be awarded for format, clarity and expression.Note 3: The presentation of Question 1 should include Introduction, Discussion, Conclusion and List of references. Due date: 19th September 3:00 pm

Robert · Accepted Answer

INTRODUCTION: 
There are no less than 120 nations embracing IFRS. It has picked up a practically overall 
acknowledgment with the exception of one exceptionally critical one – The US, the biggest 
capital market on the planet; as despite everything, it prefers GAAP.  
The principle separating factor amongst IFRS and GAAP is the approach both take towards the 
accounting standards. IFRS is standards based system while GAAP is rules-based. The GAAP 
comprises an arrangement of complex rules went for guaranteeing there are standards and 
criteria set up for any uncertainty. Then again, IFRS depends on the objectives of ideal reporting 
and on how that specific goal identifies with a particular circumstance.  
DISCUSSION: 
SEC has over and over communicated the view that a solitary arrangement of global 
bookkeeping models ought to be created and acknowledged by everyone. In SEC's Strategic Plan 
for Fiscal Years 2014-2018 it was specified that “SEC will continue to promote the 
establishment of high quality accounting standards in order to meet the needs of the investors”. It 
will consider adoption and achievability of globally acceptable accounting standards. 
The possible issues with the delay and hitch towards the convergence can be as detailed below: 
1.

The International Accounting Standards Board (IASB) has achieved “almost” worldwide acceptance and adoption of its precious and hard-delivered (that is, more than 30 years in the making)...

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