My observations on the future of U.S. GAAP and IFRSs were quoted in the article "How To Make Choice Between GAAP, IFRS" by Tammy Whitehouse in the May 22, 2007 issue of Compliance Week (subscription required). Key Points:
- Both U.S. GAAP and IFRSs will continue to change significantly over many years prior to their ultimate convergence with each other.
- In the meantime, U.S. companies face growing opportunities and incentives to switch from U.S. GAAP to IFRSs.
- Because IFRSs are country-neutral and U.S. GAAP is becoming less country-specific, financial managers should prepare now to implement country-neutral accounting standards within the next five years.
