Managing the Transition to IFRS-Based Financial Reporting: A Practical Guide to Planning and Implementing a Transition to IFRS or National GAAP

9 THE WAY FORWARD – THE MOVE TOWARDS IFRS IN THE US AND SELECTED OTHER COUNTRIES

This final chapter will explore the specific issues facing the US and a selection of other countries in terms of the progress they have made in converging with, or adopting, IFRS. The next few years will see the US decide on its strategy for convergence, endorsement or adoption of IFRS – or the hybrid approach called condorsement. Other economies will decide whether to extend the use of either full IFRS or the IFRS for SMEs fully or partially within their jurisdictions. Some countries may decide to revise their own local GAAP and make it more aligned to IFRS, as is happening in the UK and Ireland. Whatever specific decisions are made, over the next decade there will be more and more reporting entities moving to follow IFRS-based financial reporting. The aim of this chapter is to consider potential future developments and highlight some of the transition issues relevant to the jurisdictions considered.

9.1 THE US AND IFRS

The US has not yet decided on its position regarding adopting, converging with, or endorsing IFRS for use by US companies. However, a move by the US towards IFRS-based financial reporting is seen by many as a crucial factor in the international harmonisaton of financial reporting. As David Tweedie said in 2010, when he was Chair of the IASB, “We can have international standards, but we will never have global standards without the United States” (Kranacher, 2010).

Chapter 1 contained ...