IFRS. IFRS. I do not like thee, IFRS.
The debate over U.S. adoption of IFRS (International Financial Reporting Standards) has died down in recent months. This is due to three reasons, I think. First, the FASB and the IASB have declared that further progress toward convergence is no longer possible. The respective board members simply see the world differently and have come to different conclusions about the composition of specific accounting rules. In other words, no compromise is possible.
Second, many (including ProfAlbrecht) believe that upon the reelection of President Obama in November, 2012, the Securities and Exchange Commission will be directed to announce the abandonment of U.S. GAAP and the adoption of IFRS.
Third, Europe and America are side-tracked by the issue of possibly mandating auditor rotation.
But that hasn’t stopped my good friend Tom Selling of the Accounting Onion from continuing the good fight. On April 2, 2012, Selling posted an insightful and well researched piece, “Ten Claims in Support of IFRS Adoption by the SEC – and Why They are False.” So impressed with this essay, I am tempted to copy it, strike out Selling’s name and replace it with mine, and submit it to two or three leading journals.
Selling is eminently qualified to write this essay. One of the seven experts on IFRS summarized in The Summa, there is no financial accounting author more widely respected today.
You should read Selling’s masterpiece. But if you don’t want to take the time (it a pretty long essay), here is my summarization of the major points in “Ten Claims in Support of IFRS Adoption by the SEC — and Why They are False.”