More Accounting Changes by Herz Robert;

Author:Herz, Robert;
Language: eng
Format: epub
Publisher: Emerald Group Publishing Limited
Published: 2016-08-23T16:00:00+00:00

Conclusion

As I have mentioned now a few times, having a single set of high-quality accounting standards, or at least common standards, is only one part of getting to comparable, high-quality financial reporting across the global capital markets. Though not a sufficient condition for achieving the broader objective of high-quality comparable financial reporting around the world, having common standards are a necessary and critical aspect of achieving that goal. So, as described in this chapter, a great deal of time and effort has been devoted by accounting standard setters, regulators, and many other participants in the financial reporting system in the United States and around the world to the convergence of accounting standards and adoption of IFRSs. However, the joint program of convergence between the FASB and the IASB has drawn to a close and there is uncertainty about whether and how there will be continued convergence between U.S. GAAP and IFRS.

In the meantime, financial reporting stakeholders in countries that have adopted or committed to converge with IFRS continue to watch and wait to see if there is any action by the SEC regarding whether, when, and how the United States continues to participate in and pursue the goal of a single set of high-quality global standards and how this may impact the future of financial reporting in the United States and the continued movement to IFRSs across the globe.

Also, very importantly, the SEC and other major securities regulators and capital market authorities need to redouble their efforts on other fronts to ensure that the potential benefits of having a single set of international accounting standards are not dissipated because of poor and inconsistent implementation of the standards, weak auditing, and lax or nonexistent regulatory review and enforcement. Accordingly, regulatory and other structural changes at both the international and individual country levels may be needed to foster achievement of these goals.

Nobody said this would be easy. Nevertheless, I continue to believe these are very important goals that are well worth pursuing.

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