The implementation of IFRS

In the U.S. in 2009

In a regulatory sea change that could cost billions of dollars, thousands of U.S. companies — plus foreign corporations that do business here — will adopt global financial reporting rules within five years if regulators have their way.

The impact is likely to surpass that of the Sarbanes-Oxley Act of 2002, the tough anti-corporate fraud law of the Enron era that cost individual businesses millions of dollars in accounting fees. Whether U.S. companies like it or not, the new era of global accounting appears unstoppable, and businesses that ignore the International Financial Reporting Standards (IFRS) will fall behind.
The long march to IFRS would be grueling and the preparations expensive to carry out. Companies would need two to three years to upgrade their communications and software systems and to train many thousands of financial professionals. Regulators, CPAs and investors would need to intensely study global accounting principles. Business schools would have to teach students the new accounting.

In an interview, Sir David Tweedie, chairman of the International Accounting Standards Board in London, says the growth of the global economy means "we must eventually end up with a common system of regulation, auditing and accounting."

The two major accounting standards organizations — the International Accounting Standards Board and the Financial Accounting Standards Board in Norwalk, Conn. — have been toiling for several years to move the USA toward global rules.

Publish 01-05-2011

In 2009 in the United States begins to implement IFRS, but people were skeptical about the change and emphasized the economic effort that meant, but today is a day most of the companies that has recurred in The United States, comply the standardization and continues to be updated according to the rule, this means a greater effort.

Today the situation is different ...

Leonardo Blanco Barquero

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