Seemingly out of nowhere, there now appears to be a serious debate going on about whether companies should be able to choose between using U.S. GAAP or its international semi-equivalent, IFRS.
The argument is simple — the standards have converged to the point where the SEC is almost ready to let foreign issuers with U.S. listings skip the required reconciliation of their (IFRS) financial statements to GAAP. But if they can choose, goes the argument, then why shouldn't U.S companies be able to do the same?
In this blog post, I wondered whether corporate America would really be likely to abandon the "rules-based" world of U.S. GAAP for the nominally more "principles-based" world of IFRS, particularly since that would mean less ability to lobby accounting-standard setters (and, in a pinch, Congress).
See full Article.
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