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July 10, 2011

Comments

K O'M

It seems a bit odd that the CFA Institute supports IFRS adoption, while at the same time it seems to trash the IASB's proposals on the actual standards (witness the hedge accounting proposal). Could it be that they support change because it would increase demand for analysts?

To me, the question of IFRS adoption comes down to whether the SEC is prepared to take the money that the FASB collects from issuers and send it off to London to an organization that it doesn't have any direct authority over. "Condorsement" seems to suggest that they aren't willing to do so, and instead envision the US adopting jurisdictional IFRS (going back on the SEC's previous stated preference for IFRS as issued by the IASB), hoping that remaining US GAAP can make up for the deficiencies in IFRS.

RWOOD

As an American who teaches Financial Accounting at the college level in Vietnam, I spend more time than I care to explaining this situation to my students. Of course, adherence to either IFRS or GAAP would be a significant leap in the right direction here for most companies.

From a global sense, it reminds me of the governmental efforts made to convert the US to the metric system. It is only some thirty years after the effort that I wish we had converted. The limitations of our system seem so obvious now.

Perhaps the same can be said for this issue. It will become apparent when we are the only ones left using GAAP.

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