U.S. Must Adopt IFRS or Lose Influence Over Global Rules
In an interview posted by the Journal of Accountancy, the chairman of the International Accounting Standards Board (IASB) sent a clear message to the U.S. that failure to adopt International Financial Reporting Standards (IFRS) my result in losing any influence over global financial rules. IASB Chairman Sir David Tweedie indicated that the U.S. had significant influence on the creation of accounting rules, despite not using the rules domestically. He believes that the U.S. influence on standard setting could diminish if the U.S. chooses not to adopt the global set of rules.
The U.S. continues to evaluate whether or not to adopt the global set of accounting standards and as of yet has not made a decision. The SEC is still reviewing the impact on both international and domestic markets while the Financial Accounting Standards Board is attempting to find agreement between the global standards and U.S. GAAP (Generally Accepted Accounting Principles).