Examining the critical issues of IFRS implementation in the United States

The recent adoption of International Financial Reporting Standards (IFRS) by major bodies, such as the European Union, has encouraged a global effort to attain universal financial comparability and consistency. The U.S. has recently proposed a roadmap to adopt IFRS as the basis of financial reporting for publicly traded companies. The roadmap outlines issues that must be considered to successfully transition from United States Generally Accepted Accounting Principles (US GAAP) to IFRS. The purpose of this thesis is to dissect the broad implications of transitioning financial reporting from US GAAP to IFRS and to examine the primary issues that must be addressed. A discussion of the four key goals used to enhance financial standards, comparability and consistency, transparency, independence, and perception, provides a basis for examining the fundamental questions that provide the impetus for this transition. The implementation process and issues will also be examined. Issues and concerns that directly relate to the discussion of IFRS implementation in the United States (US) include political relations, education, audit methodology, technology, taxation effects, and overall costs for companies. Public perception of changes in the above issues may affect financial markets and economies worldwide. The thesis is intended to provide an in depth discussion for those who wish to further educate themselves on the potential IFRS implementation in the US. The results should allow readers to understand the vast effects of the US implementing IFRS, encouraging further consideration of critical issues that need to be resolved before the transition takes effect