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Is there a plan for GAAP to transition to IFRS?

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Is there a plan for GAAP to transition to IFRS? If so what is the timeline?

What would you consider GAAP a rule based or principle based system?

Valuation issues are a concern. Another valuation issue would be do you record assets at their historical costs or their FMV?

Hans Hoogervorst, the incoming chair of the International Accounting Standards Board believes that the "IASB's accounting standards are the only way to unleash the full potential of a truly global" market (Financial Executive, 2011). Do you agree or disagree with this opinion? Why or why not?

IFRS YES, NO, MAYBE. (cover story). (2011). Financial Executive, 27(8), 39-43

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Solution Summary

Is there a plan for GAAP to transition to IFRS? If so what is the timeline?

What would you consider GAAP a rule based or principle based system?

Valuation issues are a concern. Another valuation issue would be do you record assets at their historical costs or their FMV?

Hans Hoogervorst, the incoming chair of the International Accounting Standards Board believes that the "IASB's accounting standards are the only way to unleash the full potential of a truly global" market (Financial Executive, 2011). Do you agree or disagree with this opinion? Why or why not?

IFRS YES, NO, MAYBE. (cover story). (2011). Financial Executive, 27(8), 39-43

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Is there a plan for GAAP to transition to IFRS? If so what is the timeline?

-- The SEC has moved the date a few times. As of February of 2010, the SEC had again moved the convergence date to the year 2015. It was last set for convergence in 2014. The SEC continues to maintain in public statements that the date of convergence in 2015 is not certain, and that it can again be pushed back, if needed. There are so many issues that are still not resolved, which is the main cause of the delay in the final adoption date. Until the major areas are settled between GAAP and IFRS convergence, we will see the date continue to be pushed back by the SEC. In 2011, the SEC was supposed to decide whether they will incorporate IFRS into the financial reporting system, but due to the number of variables that had not even been worked out last year, the date for incorporating aspects of IFRS into the financial reporting system was pushed back to 2012-2013.

What would you consider GAAP a rule based or principle based system?

-- GAAP is a heavily rule based system. This is one of the major issues with convergence. IFRS is very principle based, and does not place the same emphasis on reporting actual ...

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