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Unformatted text preview: of whether IFRS is in place
worldwide. That will undercut that global and unified thingie.
S ingle reporting system for international companies is one of the major selling points of IFRS . The
professor points out this ignores national or statutory reporting for foreign subsidiaries. Regardless of
whether or not IFRS is in place, those other reporting requirements won’t go away. S o much for a
single reporting system. Companies will continue to have many complex reporting requirements.
The professor points out that one argument against IFRS is that they are inferior to GAAP. IFRS allows
more discretion and less guidance than GAAP. (That first sentence is an opinion held by many – the
second sentence is a statement of fact.)
The professor’s counter to this argument is that even if it is true, strong capital markets, S EC regulation,
and private securities litigation would provide counter pressure sufficient to prevent any deterioration in
I fear the lack of specific rules in IFRS will encourage the next round of imaginative accounting of
whoever will be the next incarnation of Enron. I am not at all persuaded the player in the next
fiasco will be dissuaded by the factors cited by the professor. When the hyper aggressive CFO wants to
do something inventive and gets into an argument with the audit partner, who is saying it just doesn’t
f eel l i k e the particular treatment fits the general spi...
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This document was uploaded on 03/06/2014.
- Spring '14