US Adoption of IFRS May Help to Jumpstart the US Economy
Accounting & Taxation, Vol. 3, No. 2, pp. 109-118, 2012
10 Pages Posted: 6 Jan 2012 Last revised: 9 Feb 2014
Date Written: 2011
The United States prompt adoption of International Financial Reporting Standards (IFRS) may help to jumpstart the US economy. Investors would be able to make comparisons and evaluate investment opportunities worldwide. US Multinational companies would be able to cut costs. In preparation of financial statements using IFRS the results presented usually portray higher figures. This would help to present more favorable valuations and help to promote growth with improved financial reporting. The result will be more job opportunities, a reduction in uncertainties, and may help to jumpstart the US economy. This paper examines existing differences in required reporting by the SEC as well as other factors affecting the adoption of IFRS in the US. We will review the effects of not adopting IFRS that may have contributed to the delay in the recovery of the US economy and the uncertainty that has been created.
Keywords: IFRS, US economy, FIFO, LIFO
JEL Classification: M41, M48
Suggested Citation: Suggested Citation