IFRS do you think it is going to help or hinder todays accou

IFRS, do you think it is going to help or hinder today\'s accounting? Is it really needed, as do we as the US do that much business with other countries to make this easier on us accountants that work for international companies

Solution

IFRS is definitely going to help accounting today as well as in the long run. IFRS or International Financing Reporting Standards are accounting standards that has been developed by International Accounting Standards Board (IASB). The IFRS is being touted as the global standard for the preparation of financial statements of public companies.

IFRS is really needed as many US companies has cross border offerings. It is a fact that a single set of high quality globally accepted accounting standards would benefit all investors in U.S. The advantages of using IFRS are that it will enable U.S. companies to prepare and present its financial statements on the same basis as its foreign counterparts and foreign competitors. This will serve the purpose of making comparisons easier. Also many U.S. companies have subsidiaries in other countries and use of IFRS will lead to prevalence of one accounting language on a company-wide basis. Many U.S. companies raise capital abroad and use of IFRS will benefit such companies as well.