School of Business
Bolling, Heather, "The New York Stock Exchange: Generally Accepted Accounting Principles Versus International Financial Reporting Standards" (2006). Senior Honors Theses. Paper 157.
Due to the growth of international business transactions and cross-border expansions, acceptable accounting principles and guidelines are among the most controversial issues being debated in the business arena. Current regulations require that any business listing with the New York Stock Exchange (NYSE) report financial statements in compliance with the United States' Financial Accounting Standards Board's (FASB) set of standards, also known as the Generally Accepted Accounting Principles (GAAP). However, many countries follow the International Financial Reporting Standards (IFRS) upheld by the International Accounting Standards Board (IASB). The NYSE's requirement causes both trouble and confusion for foreign companies. Should the NYSE require international companies to follow the US GAAP standards, the IFRS, or should businesses be allowed to choose which set they will use? The purpose of this thesis is to explore the various systems of acceptable accounting standards currently being used and determine what options, if any, the NYSE should offer to cross-border, international companies.