DB2- Accountants of the World Unite!_ Business Class - Bloomberg

DB2- Accountants of the World Unite!_ Business Class - Bloomberg

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1/23/2014 Accountants of the World Unite!: Business Class - Bloomberg http://www.bloomberg.com/news/print/2011-06-24/accountants-of-the-world-unite-business-class.html 1/3 Accountants of the World Unite!: Business Class By Christian Leuz - Jun 24, 2011 The debate over whether the U.S. should abandon its long-standing accounting standards and adopt international rules that are used by most other countries often misses an important point. While the economic case for the switch isn’t strong, failure to act carries substantial political risks for the U.S. It could also imperil the push for a global reporting regime and weaken efforts to reform other areas of global financial regulation. At the Group of 20 meeting in Pittsburgh in 2009, the international accounting bodies were charged with devising a single set of high quality, global accounting standards by June 2011. This deadline is fast approaching, but the two key players, the International Accounting Standards Board (IASB) and the U.S.'s Financial Accounting Standards Board , have recently indicated they will need more time. Moreover, there is still no decision by the Securities and Exchange Commission as to whether the U.S. will give up Generally Accepted Accounting Principles, known as GAAP, and instead use International Financial Reporting Standards (IFRS), which are applied by over 100 countries. By rejecting IFRS, the U.S. would deal a major blow to the prospect of unified global accounting standards -- a goal that is widely endorsed, including by many American companies and investors. The U.S. would almost certainly lose its current major influence on the setting of international rules including its role in the oversight of the IASB. That would be a loss: The U.S. has been a positive influence bringing authority and expertise in accounting matters. That influence would also benefit global capital markets and investors by countering the growing clout of countries that may pursue less capital-market oriented goals with financial reporting.
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