There is talk that the SEC may force US companies to drop US GAAP and adopt IFRS standards in a couple of years. Who wants to bet there will be more than a couple questions on US GAAP vs IFRS and standards convergence on the December exam! My guess is that the government wants to increase tax receipts that suffer from US companies using LIFO to minimize taxes.
It is almost certainly going to happen, but it will take time. Lucky 2015 CFA candidate.s
What will this mean for the U.S. accounting business? Will more firms go overseas rather than spending money to train Americans how to convert from GAAP to IFRS? This may hurt our economy…
the transition has already started, must be implemented by 2011…big business for big 4s
So does this mean an end to LIFO or will they continue to allow it?
Not concrete on LIFO yet, but my guess will be that LIFO gets canned. Personally, I’m excited about it. I’ve always felt IAS were more straight forward and common-sensical.
Black Swan Wrote: ------------------------------------------------------- > Not concrete on LIFO yet, but my guess will be > that LIFO gets canned. Personally, I’m excited > about it. I’ve always felt IAS were more straight > forward and common-sensical. I couldnt agree more. Plus, it will make analysis much more easier since we wouldnt have to convert as much.