IFRS International Finanial Reporting Standards (664 hits)
We are becoming a global community and the ways of our past are quickly disappearing being replaced by new, untested and potentially dangerous ways. IFRS (International Financial Reporting Standards) will soon replace our current accounting standards. This move will undoubetedly affect every business within the us, big and small, because it will cause us to revamp the way we view the profitability and loss of a company. The way banks interact and what they will accept for funding, how venture capitalists invest, how we view a company when we buy stock, and how federally funded programs fund small business. Right now there is a move for large companies to begin the process (as it is costly and time consuming) of conversion from AICPA to IFRS.
I took a class on IFRS and reporting as well as multinational companies in my graduate studies and I have attended several cpa seminars on the subject and I can tell you we are in for a massive change that has the potential to backfire big time. Imagine Enron, Global Crossing, Tyco etc type of reporting becoming the norm? Even among the nations and countries that have adopted this standard we are beginning to see irregularities in their reporting and adoption of the standards.
How do you feel about IFRS? I love some aspects but there are some that has me shaking in my boots and biting my nails because they require a degree of honesty and transperancy that I don't think Americans are willing to freely give without direct oversight and will allow criminals to be bigger criminals. Do you feel the same? Let's discuss.
