January 08, 2009
More Discussion About Moving the US to IFRS
It might seem like just one more monumental task to undertake during times of such great economic change, but think about this for a moment:
1. The US is projected to run at least a $1.2 trillion deficit for fiscal period 2009 by current estimates.
2. President-Elect Barack Obama is working congress to sell his economic stimulus plan to try to kick start the economy. This is projected to cost at least $1 trillion.
The US has certainly been the world financial leader since post World War II. But deficit spending on two wars, an economic stimulus in 2007, the 2008 economic stimulus TARP and more to come, the US is the world's largest debtor nation.
While one could make the argument that prosperity and consumer spending in the US has caused most boats to rise, the debacles on Wall Street and overspending by consumers has also caused a similar but negative reaction for the rest of the world.
The US finds itself in an awkward and unfamiliar position of a large sea change in power. Being a behemoth, causing a lot of financial wreckage around the world and a large debtor, puts the US in a position of much less power and flexibility. The US economy has been the envy of the world but that is changing. The latest cracks in ethics and large scale corruption have changed everything. It is not clear who will come out a winner from all this, but US reputation has certainly been tarnished. You cannot blame George Bush for this one, you can blame old fashioned greed for this one.
So things are changing for the US, and while it will always most likely be a world business powerhouse, it cannot afford to continue to be isolated in so many ways any more. One of these avenues is certainly accounting standards. If your emperor (Wall Street and business has been seen to have no clothes, many things begin to be examined. 112 countries have now moved or are moving to some form of the International Financial Reporting Standards (IFRS).
This is key to improving international business for all. The US must now understand that it needs to be a more equal partner to the rest of the world in many ways and accounting standards are a great way to start. The additional reason why this move is so critical is that US GAAP is the most complete accounting standard in the world and for many years the Financial Accounting Standards Board (FASB) has been working with the International Accounting Standards Board (IASB) to converge the two standards. So much accommodation to US GAAP has happened.
Is this a huge undertaking? Yes of course, but in the US' fragile economic state and with the new reality regarding its relationships to the world, it would be a good time for President Elect Obama to demonstrate some of that change he has been selling. Let's stop talking and start changing. The US may find itself being dictated to by other nations on many fronts with the expected loss of power that this latest crisis brings to the US.
Let's take the bold step in the US and converge with other nations on accounting standards as evidence that the US is a partner in the world and sees this and let's see some positive changes for all involved.
If your company is moving to IFRS and needs a cost effective solution, and wants to do it in a sensible and cost effective way, contact http://www.ifrspartner.com/ for more information on IFRS Partner® for companies beginning their conversion efforts. To find out more about events demonstrating these solutions, see http://www.ifrspartner.com/events.htm
1. The US is projected to run at least a $1.2 trillion deficit for fiscal period 2009 by current estimates.
2. President-Elect Barack Obama is working congress to sell his economic stimulus plan to try to kick start the economy. This is projected to cost at least $1 trillion.
The US has certainly been the world financial leader since post World War II. But deficit spending on two wars, an economic stimulus in 2007, the 2008 economic stimulus TARP and more to come, the US is the world's largest debtor nation.
While one could make the argument that prosperity and consumer spending in the US has caused most boats to rise, the debacles on Wall Street and overspending by consumers has also caused a similar but negative reaction for the rest of the world.
The US finds itself in an awkward and unfamiliar position of a large sea change in power. Being a behemoth, causing a lot of financial wreckage around the world and a large debtor, puts the US in a position of much less power and flexibility. The US economy has been the envy of the world but that is changing. The latest cracks in ethics and large scale corruption have changed everything. It is not clear who will come out a winner from all this, but US reputation has certainly been tarnished. You cannot blame George Bush for this one, you can blame old fashioned greed for this one.
So things are changing for the US, and while it will always most likely be a world business powerhouse, it cannot afford to continue to be isolated in so many ways any more. One of these avenues is certainly accounting standards. If your emperor (Wall Street and business has been seen to have no clothes, many things begin to be examined. 112 countries have now moved or are moving to some form of the International Financial Reporting Standards (IFRS).
This is key to improving international business for all. The US must now understand that it needs to be a more equal partner to the rest of the world in many ways and accounting standards are a great way to start. The additional reason why this move is so critical is that US GAAP is the most complete accounting standard in the world and for many years the Financial Accounting Standards Board (FASB) has been working with the International Accounting Standards Board (IASB) to converge the two standards. So much accommodation to US GAAP has happened.
Is this a huge undertaking? Yes of course, but in the US' fragile economic state and with the new reality regarding its relationships to the world, it would be a good time for President Elect Obama to demonstrate some of that change he has been selling. Let's stop talking and start changing. The US may find itself being dictated to by other nations on many fronts with the expected loss of power that this latest crisis brings to the US.
Let's take the bold step in the US and converge with other nations on accounting standards as evidence that the US is a partner in the world and sees this and let's see some positive changes for all involved.
If your company is moving to IFRS and needs a cost effective solution, and wants to do it in a sensible and cost effective way, contact http://www.ifrspartner.com/ for more information on IFRS Partner® for companies beginning their conversion efforts. To find out more about events demonstrating these solutions, see http://www.ifrspartner.com/events.htm
