Many have expressed support for a move to one set of high-quality global accounting standards. Leaders of the Group of 20 nations have called for significant progress towards this goal. President Obama in recently released plans for regulatory reforms called for substantial progress to be made in 2009. A large number of public comment letters to the SEC regarding its IFRS roadmap expressed support for global standards.
While many support the goal, there is disagreement on how to get there. Some believe the Financial Accounting Standards Board should focus on convergence with International Financial Reporting Standards. Others believe that adoption of IFRS is the best solution. Recently, the Federation of European Accountants (FEE) introduced a new wrinkle to the debate. The organization issued a policy statement recommending that the International Accounting Standards Board drop its convergence program with the U.S., and focus on issues that are more urgent.
Although IFRS adoption in the U.S. is in a holding pattern, IFRS adoption in other countries marches on. In the end, we face two likely scenarios. Either the U.S. ultimately adopts IFRS or both IFRS and U.S. GAAP coexist (converged or not). Under both scenarios, it will be important for U.S. CPAs to build foundational knowledge of IFRS.
Recognizing this need, IFRS questions will be incorporated into the CPA exam no later than 2012. Colleges are incorporating IFRS into their accounting curricula and accounting textbooks with IFRS content are expected in the reasonably near future.
If college and the exam are in the rearview mirror, the need to be bilingual in both U.S. GAAP and IFRS will be important for many financial professionals in the future. While a CPA today may work exclusively in US GAAP, their next opportunity may be with a company or client that uses IFRS. For those that work for foreign owned companies, chances are they are proficient today. For those that work with U.S. multinationals, developing IFRS proficiency may be an important career-expanding decision.
How important do you believe being bilingual in U.S. GAAP and IFRS will be in the future?
