The analysis focused primarily on the role, structure and funding arrangements for the International Accounting Standards Board (IASB), an entity that has been responsible for major initiatives and agenda related to accounting harmonization worldwide. As we reviewed the structure and responsibilities of the IASB, it became clear that the organization cannot succeed in the future without the assistance of two key market players: the European Union (EU) and the US. While the US has consistently supported IASB regulation, the process of using IFRSs in the US is fairly new. This lesson will focus on specific current proposed regulation that will promote and mandate the use of IFRSs for certain US companies by year 2014.
The first part of the lesson will focus on the rationale behind IFRS application in the US. Specifically, we will consider why the US SEC believes that the use of IFRS will be appropriate and could be more beneficial to the US financial market than US GAAP standards. As part of this discussion, we will analyze the increasing global nature of today's capital markets; the application of IFRS as high-quality accounting standards in foreign jurisdictions; and the institutional capacity of the IASB to become a global standard setter for accounting harmonization in the future. After reviewing this topic you should be able to examine the benefits and hurdles of IFRS adoption in the US market.
Topic will focus on the US SEC Roadmap for potential use of financial statements prepared in accordance with IFRS by US issuers. We will examine the milestones and agenda set forth by the Roadmap, including improvements in financial standards, institutional accountability, interactive data reporting, training, auditing and accounting controls. This section will also provide an overview of proposed limited use of IFRS and potential mandatory regulation after 2011. By the end of the lesson you will be able to describe the US SEC proposed accounting harmonization Roadmap for IFRS implementation by US issuers and the steps that will be involved in the process of analyzing the applicability of IFRS adoption in the US market.
The forum discussion, as well as the individual assignment due at the end of the lesson, will allow us to share viewpoints regarding the benefits and issues related to the use of a single set of globally accepted accounting standards from the perspective of US investors, US issuers and US markets.