Friday, July 24, 2009

Accountants’ Group Calls for Single Set of International Rules - Bloomberg

Bloomberg posted an interesting article on the continuing debate for a single set of international accounting standards. This is a debate that is going to on for a while.

My opinion: Theoretically a single set of international accounting standards makes sense, and I'm not going to go into all of the reasons for it.

The unsettled question is what are those standards going to be? All of the momentum is behind the International Financial Reporting Standards ("IFRS"). As I've noted previously, the Financial Accounting Standards Board has been working for several years to "converge" US standards to IFRS. Many affected parties in the US are against this process for a host of different reasons. I think ultimately this is where things are going.

The article concludes with something I strongly agree with: the politicians have to stay out of this. Leave this to the standard setters.

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