The United States Should Convert to IFRS Essay example -- IFRS Account

The changes in IFRS will affect some slight modifications to significant amendments of principles. It can affect different areas of financial statements and information. For example, extensive disclosure requirements, financial statements and how specific elements will be recognize and measured. Those elements are financial instrument and employee benefit (IFRS, 2012). I think that it would be beneficial for United States to switch to IFRS, but I think that SEC should not vote to switching to IFRS after companies spend millions of dollars on converting from GAAP (Maryland). The European Union has already switched to IRFSs. It happened the same year when United States companies had deadline to switch over (Johnson). There are at least three reasons why the United States should switch to IFRS. The reasons are: international financial reporting standards. They will make easier for company to compare, understand and it will help stay up-to-date to multinational businesses (Johnson). Switching to IFRS will help not just companies but also investors and public globally to compare financial statements. If every country has different financial standards, if would be problematic to compare how each company stands because they are not the same. The United States is the only country who does not use the metric system (meters, kilometers, litters); instead they use the customary system (inches, feet). For example, if you will have to drive in another country you will not understand how far another grocery store because the sign tells you in meters not in miles. Also, if United States will switch over to IFRS from GAAP, it will allow US to become a part of the global economy. Another reason for United States to switch to IFRS th... ...l language is also beneficial for comparison of statement, understanding, and saving cost for international companies. Works Cited Albrecht, D. (October, 2011). American Institute of Certified Public Accountants. (November, 2013). International FinancialReporting Standards. Durham, NC: AICPA. Gill L. (June, 2012) IFRS: Coming to America Whitehouse T. (December, 2013). Foundation Says IFRS Becomes Global Preference. IFRS Changes Impacting the Banking Industry (August, 2012). Pricewaterhouse C. (November, 2012). Benefits of Changing to IFRS. The Maryland Association of CPAs. (November, 2013). SEC offers roadmap to global accounting standards. Horsfall N. (December, 2013). FRS Urges More Firms to Adopt IFRS. Durham. (November, 2008.)American Institute of Certified Public Accountants. International Financial Reporting Standards.