A little rebellion now and then…is a medicine necessary for the sound health of government.
Thomas Jefferson (1743 – 1826), Letter to James Madison, 1787
In his blog of Aug. 25, 2008, Tim Reason of CFO.com asks, Is There an IFRS Resistance Movement?
If there isn’t, there ought to be. I don’t know who would be the general, or even the spokesman. However, some leading accounting professors are coming out against International Financial Reporting Standards (IFRS) and in favor of United States Generally Accepted Accounting Principles (GAAP). And last week, PCAOB member Charles Niemeier spoke out against adopting IFRS. Who is the next high profile regulator to come out against the SEC push for IFRS? I heard a colleague conjecturing that it could possibly be SEC Commissioner Elisse B. Walter (democrat).
Over the weekend, I posed Tim Reason’s question on the international listserv for accounting professors–AECM. The discussion is still going on. However, the first three responses were pretty enlightening:
Why? There is no use in beating a dead horse.
Resistance is futile.
No use in beating your head against a dead horse.
(pseudo yogiism by Ed Scriber)
It is difficult for me to see other baby boomer accounting professors avoiding the opportunity to engage in the protest movement of a professional lifetime.
Nearly 40 years ago, I had a great time manning the barricades, painting and carrying signs, staying out all night and chasing cute female protesters. It is the painting signs qualification that I now offer the anti-IFRS movement. With Google image search combined with word processing and screen capture programs, I came up with the following posters and images for the First Accounting War of the 21st century. These are part tongue-in-cheek, part serious.
Is American resistance to IFRS futile?
I love GAAP
No IFRS
United States GAAP and Apple Pie
MM says U.S. GAAP is so sexy
Raising the flag of U.S. GAAP
Uncle Sam wants you to fight IFRS
Lady Liberty for GAAP
Now, for you on the other side, I’ve created a few pro-IFRS images
Well, there you have it. Campaign posters for the coming war. Have any suggestions for others? Leave a comment and I’ll make some more. I thank Bob Jensen for providing the inspiration for today’s essay.
Over and out – - David Albrecht
Loved your posters. I’ll post a link on my blog today.
“Resistance is futile”
Darla Sycamore
“The IFRS Exorcist”
digital art prints…
Great Work!…
I think this is not in the uniformity of the world accounting. The way forward to IFRS is for betterment of investor as world ecomony is coming closer day by day. I think each individual should understand the requirement of IFRS – its disclosure * the advantage which everybody will get by adopting similar GAAP.
There is nothing wrong with US GAAP but the world is not onlu U.S.. Think for global economy & adbvantage for all.
Well wisher for world accountancy
Kevin
Kevin,
Thanks for your post. Proponents of IFRS claim that its advantages are self-evident. However, there is no really good explanation for why the world should have one set of accounting standards. The world does not have one of anything. Why should there be one set of accounting rules.
Other than being incredibly idyllic, it is also naive. There are so many differences in the world between financial markets, companies, executives and investors, it really is difficult to believe that one set of accounting rules will make everyone better off. I can’t find any theory to support that even a large minority will be made better off.
I hope you read my eight part series on why it is not a good idea for the U.S> to adopt IFRS.
David,
I understand your concern of one accounting norm for all of us. But I am refering to future where companies from different contries will have offices in various conytries. To follow accounting rule of all contry will be a diffcult task in consolidation & difficult for investor to understand the norms. Once IFRS will be implemented. the whole world will speak one language & it will be so easy to borrow, lend or to have different contries as a stake holder. Investor will have no problem in understanding the disclosures & mainly accountant will have uniform accounting at world level. Accountant may change his contry but his work will continue. Investor will change but disclosure will remain same.
I hope you understand the easyness of uniformity.
Best regards
Kevin
Oh, you are referring to the future, not now. Well, then, can you fault so many in the U.S. who claim that the time is not now to make a change?
It would hemp me for you logically dispute the argument by Ray Ball, and perhaps then I can understand where you are coming from.