Honors Program Theses


Open Access Honors Program Thesis

First Advisor

Mark Bauman


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



Department of Accounting

University Honors Designation

A thesis submitted in partial fulfillment of the requirements for the designation University Honors


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Date Original


Object Description

1 PDF file (27 pages)