Honors Program Theses
Award/Availability
Open Access Honors Program Thesis
First Advisor
Mark Bauman
Keywords
International financial reporting standards; Accounting--Standards; Corporations, Foreign; Corporations, American;
Abstract
The importance of discussing implications of adoption of International Financial Reporting Standards (IFRS) in the U.S. is imperative to financial investors, audit committees, and corporations' management as IFRS may potentially impact earnings quality and the consistency of financial statements which in turn may influence earnings per share of that particular organization. As the standards are set to converge to IFRS tentatively in 2015 for the United States, it is essential to have some indication of what types of hindrances and differences will be a result of adopting a new set of financial reporting standards. This can be accomplished by examining other countries that have already been mandated to replace their domestic generally accepted accounting principles (GAAP) with those of the International Financial Reporting Standards in order to predict what implications will be evident to United States corporations when the adoption becomes mandated by the Securities and Exchange Commission (SEC) in 2015.
Through my research and examination of impacts of IFRS adoption in Hong Kong, the European Union, and Australia it can be concluded that the U.S. will experience similar results to these countries with immaterial effects on the financial statements. Since the U.S. has been engaged in early convergence efforts consistent with the countries evaluated, financial impacts of IFRS adoption will be minimal. Although financial impacts will be minimal, the U.S can expect to experience beneficial consequences such as less managing of earnings, reduced cost of capital, and a higher accounting quality as experienced by the other countries. It is crucial for the United States to begin early convergence efforts to minimize any material differences that may arise between IFRS and U.S. at the time of adoption.
Year of Submission
2011
Department
Department of Accounting
University Honors Designation
A thesis submitted in partial fulfillment of the requirements for the designation University Honors
Date Original
5-2011
Object Description
1 PDF file (27 pages)
Copyright
©2011 Emily Schippers
Recommended Citation
Schippers, Emily, "Assessment of the Adoption of IFRS in Foreign Countries in Comparison to the Anticipated Results of United States IFRS Adoption" (2011). Honors Program Theses. 874.
https://scholarworks.uni.edu/hpt/874
Comments
If you are the rightful copyright holder of this thesis and wish to have it removed from the Open Access Collection, please submit a request to scholarworks@uni.edu and include clear identification of the work, preferably with URL.