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Abc V Traditional

In: Business and Management

Submitted By jamie9207
Words 3945
Pages 16
Abstract
International Accounting Standards are not always implemented into companies around the globe. Most industrialized countries have their own organizations, such as the United States Financial Accounting Standards Board, that govern their accounting standards. This can cause major difficulties for multi-country corporations, as well as confusing for investors who are trying to compare company financials. To rectify this problem, the SEC has prepared a roadmap that proposes requiring all U. S. companies to implement an improved version of International Financial Reporting Standards as soon as 2014. What would be required to implement these changes? Are accountants today ready and able to implement these news standards or will continuing education be vital to prepare them? If the U. S. takes on these changes, are other countries willing and able to implement changes as well? What will be accomplished with the implementing of a more universal system?

Implementing International Financial Reporting Standards
As the countries of the world become increasingly interdependent, language barriers must be transcended in order to promote adequate communication. This is true not only of spoken language, but also of accounting, which is commonly known as the language of business (Spiceland, Sepe & Nelson, 2011, p. 4). Global commerce has sounded the call for financial entities worldwide to speak one common language.
Historically, the standardization of accounting principles has followed the integration of the financial markets served by those principles. Standardized national accounting emerged in the United States in the early twentieth century as the nation’s economy became more unified. Today, the global economy demands greater congruence of accounting standards (Beke, 2010).
Until recently, most industrialized countries have had their own...

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