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IFRS and the Accounting Consensus

Write a 1-2 page research summary on the document below authored by Sunder. Focus your paper on Sunder's five key elements of consensus for common accounting standards for multinationals.

IFRS and the Accounting Consensus

SYNOPSIS: A broad consensus in accounting favors principles over rules to guide creation of a uniform high-quality set of standards for use everywhere, and granting monopoly power to a single body for this purpose. If implemented into policy, this consensus will discourage discovery of and evolution toward better methods of financial reporting, make it difficult to conduct comparative studies of the consequences of using alternative methods of accounting, promote substitution of analysis and thinking by rote learning in accounting classes, help discourage talented youth from collegiate pro- grams in accounting, and probably endanger the place of accounting discipline in uni- versity curricula. Because the presumed benefits in the form of increased comparability of financial reports internationally or stateside are unlikely to be realized, the wisdom of undertaking these burdens remains questionable. The paper calls for a re-examination of the accounting consensus.
Keywords: accounting education; accounting standards; IFRS; uniformity. JEL Classifications: M41; M44.

This paper presents a heterodox perspective on International Financial Reporting Standards

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Sunder's five key elements of consensus for common accounting standards for multinationals are the following. First the standards should be principles and not rules. Second, there should be high quality written standards of financial reporting applicable to all companies so that financial reports become more comparable and help investors and other users of financial information make better decisions. Third, to develop these standards a body should be created which will consist of select experts, have a good structure, due process, and legal funding under regulatory authorities such as the SEC, the EC, or International Organization of Securities commission. Fourth, FASB and IASB should be merged into one corporate body. Fifth, a single set of standards should be practices in the US, the European Union, and in other ...

Solution Summary

The response provides you a structured explanation of IFRS and accounting convergence . It also gives you the relevant references.