Is IFRS an ever so slightly antiquated means of implementing global accounting standards? Could be.
There are two fascinating articles out today:
- “Critics unearth ‘second thoughts’ over IFRS,” by Rose Orlik of Accountancy Age
- “IFRS Adoption is Dead (I Think),” by Tom Selling of Accounting Onion
Orlik details developments in the UK, Italy and France where there may very well be financial reporting in parallel. That means dual financial reporting under both IFRS and national GAAP. She writes, “One expert told Accountancy Age that these cases show the international model “is beginning to fall apart”, arguing that post-crisis, the cracks in IFRS are starting to appear.” Of course, it might not mean anything.
Selling states in his blog post that, “… precious few countries have fully adopted IFRS and given up their sovereignty over accounting standards.” In the U.S., the political winds seem to be coming from several directions:
The political hold on global accounting standards seems to emanate from the G-20, which (for its own political purposes) has called for converged accounting standards to happen post haste. The notion of outright IFRS adoption may have become passé, especially as it has become widely known and acknowledged that so few countries are actually doing it; but the Obama administration, perhaps with good reason, does not want to be seen as the dissenter on this issue, particularly if it is relying on cooperation on other issues that could be more important to the U.S.
IFRS, IFRS, whither are thou? Art thou the coming of a single set of global accounting standards? Or art thou languishing in a coffin, relegated to the dustbin of history?
Debit and credit – – David Albrecht