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chapter 1 summary - are some people questioned and worried...

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Yunqi Li ACCT 230-30247 Sep. 3 The Summary of “SEC Moves to Pull Plug on U.S. Accounting Standards” This piece of new is mainly about the move that SEC signaled the demise of U.S. accounting standards and the following international accounting rules. The SEC proposed that some multinational companies report earnings according to IFRS in 2010 and all the U.S. companies would change the accounting rules to IFRS in beginning 2014. This proposal will be discussed and decided later that year. The SEC said this change make the U.S. companies become more competitive to other foreign companies.SEC Chairman Christopher Cox noted that 100 countries around the globe use IFRS and two-thirds of U.S. investors currently own securities of foreign companies. Jack Ciesielski, an accountant and publisher of the Analyst’s Accounting Observer, says accounting under IFRS tend to lead to higher earnings. However, there
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Unformatted text preview: are some people questioned and worried about this big change. Barbara Roper, director of investor protection at the Consumer Federation of America, said allowing certain U.S. companies to switch ahead of others would “shift the burden of the translation between the two accounting languages onto investors.” . D.J. Gannon, a partner with Deloitte & Touche LLP in Washington, figures most U.S. companies aren’t ready yet to switch to international accounting, and probably need five to seven years to prepare. “Education and training is a big issue,” Mr. Gannon said. Companies urge the SEC to be cautious in writing its own guidance and interpretation of international rules. Otherwise, they say, several national interpretations of the same global rules may develop, defeating the purpose of a single standard....
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