Abstract

A topic currently being debated in the field of accounting and finance in the United States is the potential change from the rules-based version of U.S. Generally Accepted Accounting Principles (GAAP) to the principles-based International Financial Reporting Standards (IFRS). There are many pros and cons to this transition that will affect companies, investors, public accounting firms, certified public accountants, accounting professionals, the education system, and standard-setting boards. The world of business is becoming increasingly globalized; therefore, if there is a single set of international reporting standards, the world can become more connected through business. Many countries have already adopted and are currently reporting under the IFRS. Even though it would help build international relations, it is particularly difficult for the United States to consider this change because it could be detrimental to the world’s largest economy during the transition and short-term. A change to international standards would increase flexibility and comparability to foreign companies’ financial information, but there would be an extreme cost and the loss of a gold-standard set of financial reporting standards. The best approach to achieving a high quality set of international financial reporting standards is with continued convergence, in which the standard-setting boards work together to minimize the differences between standards. This will provide the most long-term benefits that outweigh the detriments.

Semester/Year of Award

Spring 2014

Mentor

Denver H. Travis

Department/Professional Affiliation

Accounting, Finance, and Information Systems

Access Options

Restricted Access Thesis

Degree Name

Honors Scholars

Department

Accounting, Finance, and Information Systems

Share

COinS