The Adoption of the IFRS in the United States Capital Markets and its Impact on the Consolidated Financial statements of American Multinational Corporations
Silungwe, Ackim (2018)
Silungwe, Ackim
Yrkeshögskolan Arcada
2018
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018062314198
https://urn.fi/URN:NBN:fi:amk-2018062314198
Tiivistelmä
As Globalization continue to shape the world and making it one small village .the financial world has not been left behind in its quest to be integrated as a universal language.
The purpose of this paper is to make a literature study which focuses on the International Financial Reporting Standards (IFRS). which is the most used in the accounting world .and how if adopted in the US financial market by the securities and exchange commission (SEC) could harmonize the workload of Auditors, Investors, Govern-ment and the General public in understanding, evaluating and reporting of the consolidated financial statements of American conglomerates Trading with the US Capital market and currently mandated to report only with the US-GAAP , and how the shift to the IFRS could be adjusted and consequently eliminating the cross boarder hitches often experienced in international trade.
The paper also scrutinized the similarities and the differences of the IFRS and the US-GAAP. And also observe the benefits and challenges of the IFRS adoption.
In order to make an informed decision, the author applied the qualitative research method by studying earlier up-dated literature on the subject from experts in the field through the books and academic journals that where easily accessed from Arcada university of applied Sciences library, google scholar as well as online articles written by ac-ademic experts on the subject from university professors to IFRS foundation to SEC website to FASB and IASB and the big four accounting firms KPMG,PWC, Deloitte and EY respectively.
The outcome of the revision recommended that the world is ready and the world is waiting for the country with the biggest market capitalization to adopt the IFRS. with the vast majority of partakers in the American financial mar-kets having the positive view of the adoption that includes the American corporations themselves and its capital markets i.e. NASDAQ,NYSE and OTC, however a few number of experts have a negative view on the adoption as they point on the case of sovereignty of standard setting .the mixed outlooks from the policy makers sets the de-lay tone for the adoption ,As every administration from policy makers comes with its own agenda and perception on how the financial system of the United States should be governed .
Overall, the benefits of adoption outweigh the challenges regardless of the current political rhetoric coming from Washington.it is no longer the question of if but that of when for the full adoption of the IFRS in the united states capital market.
The purpose of this paper is to make a literature study which focuses on the International Financial Reporting Standards (IFRS). which is the most used in the accounting world .and how if adopted in the US financial market by the securities and exchange commission (SEC) could harmonize the workload of Auditors, Investors, Govern-ment and the General public in understanding, evaluating and reporting of the consolidated financial statements of American conglomerates Trading with the US Capital market and currently mandated to report only with the US-GAAP , and how the shift to the IFRS could be adjusted and consequently eliminating the cross boarder hitches often experienced in international trade.
The paper also scrutinized the similarities and the differences of the IFRS and the US-GAAP. And also observe the benefits and challenges of the IFRS adoption.
In order to make an informed decision, the author applied the qualitative research method by studying earlier up-dated literature on the subject from experts in the field through the books and academic journals that where easily accessed from Arcada university of applied Sciences library, google scholar as well as online articles written by ac-ademic experts on the subject from university professors to IFRS foundation to SEC website to FASB and IASB and the big four accounting firms KPMG,PWC, Deloitte and EY respectively.
The outcome of the revision recommended that the world is ready and the world is waiting for the country with the biggest market capitalization to adopt the IFRS. with the vast majority of partakers in the American financial mar-kets having the positive view of the adoption that includes the American corporations themselves and its capital markets i.e. NASDAQ,NYSE and OTC, however a few number of experts have a negative view on the adoption as they point on the case of sovereignty of standard setting .the mixed outlooks from the policy makers sets the de-lay tone for the adoption ,As every administration from policy makers comes with its own agenda and perception on how the financial system of the United States should be governed .
Overall, the benefits of adoption outweigh the challenges regardless of the current political rhetoric coming from Washington.it is no longer the question of if but that of when for the full adoption of the IFRS in the united states capital market.