International Financial Reporting Standards (IFRS) instead of the currently used Generally Accepted Accounting Principles (GAAP).

Introduction

An international financial market utilizes three types of accounting standards: IFRS, US GAAP and UK GAAP. American and British standards not inferior to the importance of IFRS as the main financial centers are in New York and London.

Discussion

The processes occurring in the long-term capital markets in the world show a decrease, in relative terms, the level of the historical U.S. dominance in international economics. However, the volume of investments in stocks outside the territory of the United States reached approximately U.S. $ 3 trillion. Many countries around the world moving or planning to move to the practical application of International Financial Reporting Standards (IFRS) as amended by the International Accounting Standards Board (IASB). Against this backdrop, developers and standards bodies in charge of the banking system in the U.S., tend to migrate to a single batch of high-quality unified international accounting standards called International Financial Reporting Standards (IFRS).However, there is no certainty in what form and when it happens, and what consequences this may lead to legislative bodies at various levels (Lindberg D., Seifert DA, 2010, pp. 229).

It's time to decide

From the observer viewpoint the impression between the Securities Commission (SEC), the International Accounting Standards Board (IASB) and the Council of Financial Accounting Standards (FASB) has developed an intricate situation is reminiscent of the scenario with the question: “What came first - the chicken or the egg?”Apparently, the Securities and Exchange Commission (SEC) wishes to both the Council completed work on versions of some basic standards, such as the principle of recognition of profits before determining the timetable for the documents. When a member of the FASB needed to determine the date of adoption of new standards the Commission considers that in the past, a Memorandum of Understanding between the IASB and FASB served as a reliable basis for the settlement of differences in standards and the standards themselves to bring the world into conformity with the standards of the United States. However, lack of full integration of standards, i.e. what is call a true standard in identical wording, creating confusion and additional difficulties. Do you have nine standards that require elaboration on both sides? You have great plans now need to implement them. It's time to get to work (Fay R., Brozovsky J., Lobingier P., Ruckman, 2011, pp. 341).

A trip for two horses

Meanwhile, in the absence of a clearly established the transition date, the Council of Financial Accounting Standards (FASB) has to carry out its business operations with the grace of a juggler, combining practical reports on accounting principles (GAAP) and joint projects c using International Financial Reporting Standards (IFRS). The Council of Financial Accounting Standards (FASB) has made a commitment to develop a single set of high-quality unified international financial reporting standards. His responsibilities also include assistance in the promotion and optimization of Generally Accepted Accounting Principles (GAAP) United States, and the solution of pressing issues as they arise.

According to the President of the ...