Tom Selling of the Accounting Onion is by far the best writer today on GAAP vs. IFRS. It isn’t easy being Tom, given that the political, regulatory and auditing establishment (political types all) have come out in favor of IFRS. They publish so much spin (don’t touch it or smell it) about the benefits of the U.S. moving to IFRS, that it must seem like everyone in the world is for it.
But they aren’t. All the smart guys are against it. Isn’t that the way it so frequently works. Smart, educated sane professionals trying to make the world a better place are pitted against powerful political parties whose only interest is what’s in it for them. And India is backing off its commitment to IFRS after it decided it would need 65 carve-outs.
Today’s e-mail brings notification that Tom Selling has written yet another must read blog post on the issue. He writes about the establishment spin, on one hand, and on other hand a WSJ reporter’s careful analysis of the perils of IFRS. The blog post is titled, “ ‘Convergence Flaws’” v. Convergence Spin.” You should just go read it. You won’t be sorry.
Just a thought: David Tweedie is making the rounds again hawking IFRS. Is there anyone less believable in the accounting world today? Other than E&Y after its Lehman Brothers audit opinion?
Another thought: A recent survey of financial statements users reveals that 18% believe the auditor report is of no use to them at all. I wonder what the results would have been had they asked about the value of IFRS financial statements.
Yet another thought: Is there any more of a perfect storm than (1) corporate executives preparing financial statements (2) under IFRS and (3) receiving a clean audit opinion from a large audit firm?
Debit and credit – - David Albrecht