Accounting for the Future: Reducing the Differences between International and Domestic Accounting Standards and Becoming a Better Global Citizen While Maintaining Autonomy
School of Business
GAAP, IFRS, Harmonization, Objectives-based, SEC, FASB, IASB
Hassler, A. (2015) Accounting for the future: Reducing the differences between international and domestic accounting standards and becoming a better global citizen while maintaining autonomy. p. 1-34.
In recent times, the FASB and the IASB have heavily discussed bringing the United States on board to utilize the same IFRS accounting standards that much of the rest of the world uses. At this present time, IFRS adoption in the United States is no longer actively being considered, and alternative means of convergence have become the preferred method for supporting globalization. This paper posits that in order to serve a worldwide business community, the principles-based approach is more conducive to the flexible modern environment. The practices currently utilized to jointly-research and co-develop accounting standards by both the FASB and the IASB are instrumental in promoting efficiency and increased perspective as new, joint standards are instituted. A continued movement toward principles or objectives-based accounting as previously suggested by the SEC is suggested as the best way to unify the United States with the rest of the world within the accounting field.