In December, 2011, Leslie Seidman (FASB), and Hans Hoogervorst (IASB) declared convergence between U.S. GAAP and IFRS to be at an impasse. Chief Accountant James Kroeker said the SEC would need further study on the issue. Since then, much has been written about the prospects for the U.S. adopting IFRS at this time.
Here is my thinking on the issue, but I really don’t know why I’m bothering. I’ve played this prediction game before, and have failed miserably. I don’t have inside contacts at the SEC, so there is no flow of inside information.
I doubt the SEC will make any decisions on IFRS until after the first Tuesday in November (election day) and the results have been certified.
The rationale is fairly simple. IFRS is unpopular with many American rank and file accountants, small and medium business executives, and smaller investors. Because observers expect a close presidential election between Democratic incumbent Barak Obama and the Republican challenger, President Obama will not risk alienating voters by adopting IFRS. There will be time for that afterward if Obama wins the election. If he doesn’t, then IFRS will wait for the next president.
Debit and credit – - David Albrecht